FTX Founder Sam Bankman-Fried Arrested in Bahamas, Charged With Fraud
Sam Bankman-Fried, founder of failed cryptocurrency exchange FTX, was arrested on Monday in the Bahamas, and on Tuesday, the Securities and Exchange Commission (SEC) filed a civil complaint accusing Bankman-Fried of fraud.
Key Quotes: "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," SEC Chair Gary Gensler said in a statement. "The alleged fraud committed by Mr. Bankman-Fried is a clarion call to crypto platforms that they need to come into compliance with our laws."
For Context: The arrest request was made by the U.S. government when FTX collapsed last month after allegedly defrauding customers. The SEC is moving to ban Bankman-Fried from the cryptocurrency industry. Criminal charges are expected to be announced shortly by prosecutors for the Southern District of New York. An increasing number of media reports, and statements from Bankman-Fried, have suggested that client funds have been improperly accessed by the company's top brass, costing investors millions of dollars. Bankman-Fried allegedly used FTX funds to make risky bets at his hedge fund Alameda, and to make large political donations and lavish real estate purchases.
How the Media Covered It: The arrest was covered widely by sources across the political spectrum, with both sides noting that Bankman-Fried has denied knowingly co-mingling funds between FTX and Alameda.
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From the RightFTX Founder Sam Bankman-Fried Arrested in Bahamas
Sam Bankman-Fried, head of the cryptocurrency-exchange company that collapsed last month, was reportedly arrested on Monday in the Bahamas at the request of the U.S. government.
The Royal Bahamas Police Force took the failed financial tech entrepreneur into custody after the U.S. filed criminal charges against him, according to a press statement. FTX, which Bankman-Fried founded, imploded in November, costing investors millions of dollars in losses. The fallen businessman has been accused of misusing customer funds deposited with FTX to artificially prop up another one of his enterprises: a crypto hedge fund, Alameda Research,...
From the LeftFTX founder ‘orchestrated years-long fraud,’ SEC says
The Securities and Exchange Commission charged Sam Bankman-Fried on Tuesday with defrauding investors and customers in his failed crypto exchange FTX.
The SEC said Bankman-Fried, “orchestrated a years-long fraud” to conceal from FTX investors the diversion of customer funds to Alameda Research, his crypto trading firm.
“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,” SEC Chair Gary Gensler said in a statement.
Regulators signaled this may be just the first of...
From the LeftSam Bankman-Fried accused of fraud by SEC
The U.S. Securities and Exchange Commission on Tuesday filed a civil complaint accusing Sam Bankman-Fried of "orchestrating a scheme to defraud equity investors in FTX" and seeking to ban him from the cryptocurrency industry.
What to watch: This comes ahead of criminal charges that will be announced later this morning by prosecutors for the Southern District of New York.
The SEC — which filed the complaint in a New York federal court — also noted that SBF is expected to face criminal charges.
Why it matters: A growing number of media reports and statements from FTX's...
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