Headline RoundupDecember 13th, 2022

FTX Founder Sam Bankman-Fried Arrested in Bahamas, Charged With Fraud

Summary from the AllSides News Team

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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