SEC charges FTX co-founder Sam Bankman-Fried with 'defrauding investors'
Following his arrest in the Bahamas, the US Securities and Exchange Commission (SEC) has charged FTX co-founder Sam Bankman-Fried with "defrauding investors," it announced. It alleges that Bankman-Fried "concealed his diversion of FTX customers' funds to [the] crypto trading firm Alameda Research while raising more than $1.8 million from investors."
At the same time, the US Attorney's Office or the Southern District of New York and the Commodity Futures Trading Commission (CFTC) also announced charges against Bankman-Fried in parallel actions, according to the SEC.
"We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto," said SEC Chair Gary Gensler. "The alleged fraud committed by Mr. Bankman-Fried is a clarion call to crypto platforms that they need to come into compliance with our law."
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[original story: Engadget]