Sam Bankman-Fried charged with fraud and money laundering

Federal prosecutors charged FTX Trading founder Sam Bankman-Fried with eight counts of fraud, money laundering and other financial crimes, according to an indictment on Tuesday.

The US Attorney’s Office for the Southern District of New York alleges that Bankman-Fried intentionally defrauded clients by using her crypto assets to pay off loans and expenses incurred by FTX’s hedge fund, Alameda Research. According to the indictment, Bankman-Fried and other accomplices knowingly submitted falsified documents to lenders, who sent funds to Alameda.

In the unsealed indictment, Bankman-Fried is also accused of violating political contribution laws by donating to candidates and committees in the Southern District of New York in the name of another person.

An attorney for Bankman-Fried, Mark S. Cohen, said Tuesday that Bankman-Fried “is reviewing the allegations with its legal team and is considering all of its legal options.”

According to Nicholas Biese, a spokesman for US prosecutors, the maximum possible prison term from these charges is 115 years.

The charges come on top of fraud allegations from the US Securities and Exchange Commission filed against Bankman-Fried on Tuesday. The SEC has accused Bankman-Fried of mixing FTX clients’ funds in Alameda with undisclosed venture investments, lavish real estate purchases and large political donations. The Commodity Futures Trading Commission announced similar fraud charges against Bankman-Fried and FTX on Tuesday, in a lawsuit alleging the companies lost $8 billion in customer deposits.

Former FTX CEO Sam Bankman-Fried arrested, faces charge of defrauding investors


official in the bahamas Bankman-Fried were arrested late Monday He allegedly engaged as CEO of a now-defunct cryptocurrency exchange for activities on behalf of the US government. He was to testify before the House Financial Services Committee on Tuesday about the collapse of FTX, but his name has been removed from the witness list.

Bankman-Fried, which was under criminal investigation by US and Bahamian authorities after FTX collapsed last month, filed for bankruptcy on November 11.

FTX Was Suddenly One of the World’s Largest Cryptocurrency Exchanges Before failed last month, Users withdrew nearly $5 billion of crypto assets in a single day as concerns grew over the exchange’s solvency.

FTX raised nearly $2 billion from investors in the three years before its collapse. Now the company owes at least $3 billion to creditorsAccording to the bankruptcy court filing.

Since the collapse of FTX, Bankman-Fried has gone into hiding at his Bahamian luxury compound in Nassau. He has the right to oppose his extradition, which may delay but not prevent his transfer to the US.

New FTX CEO John Ray III, who is expected to testify before the House on Tuesday, said this week that FTX collapsed because a “very small group of grossly inexperienced and unsophisticated individuals” who were running the company were “almost nobody.” Failed to implement systems or controls that are necessary for a company entrusted with other people’s money or property.”

The Associated Press contributed to this report.

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