Thursday, February 2, 2023

He accused the CEO of cryptocurrency platform FTX of fraud

Prosecutors in the United States have charged Sam Bankman-Fried, the founder and former CEO of cryptocurrency exchange FTX, with a series of financial crimes and violations of political campaign finance laws, alleging that he played a central role in the collapse of the cryptocurrency exchange . The company hid its problems from investors and the public.

Eight charges have been filed against Bankman-Fried, including wire fraud, money laundering and conspiracy to defraud. He was also charged with violating political campaign finance laws, a remarkable allegation for being one of the largest political donors of the year.

On the other hand, the United States Securities and Exchange Commission (SEC) accused Bankman-Fried of defrauding its investors.

An SEC complaint filed on Tuesday alleges that Bankman-Fried raised more than $1.8 billion from equity investors since May 2019 by promoting FTX as a safe and responsible platform for buying and selling cryptocurrencies.

The civil suit states that Bankman-Fried diverted client funds to her private crypto fund, Alameda Research LLC, without warning. It said the Bankman-Fried mixed client funds in Alameda to make undisclosed venture investments, purchase luxury real estate and make large political donations.

“We allege that Sam Bankman-Fried built a house of cards on a foundation of deceit, while telling investors it was one of the safest buildings in crypto,” said SEC Chairman Gary Gensler. “The alleged fraud perpetrated by Mr. Bankman-Fried is a wake-up call for crypto platforms to comply with our laws.”

Bankman-Fried was arrested Monday in the Bahamas at the request of the US government, officials in both countries said.

A spokeswoman for Bankman-Fried declined to comment Monday afternoon. Bankman-Fried has the right to appeal his extradition, which could delay but is unlikely to prevent his transfer to the United States.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news