SEC Charges FTX Founder with Fraud


Sam Bankman-Fried, the founder of defunct cryptocurrency firm FTX, was charged Tuesday by the U.S. Securities and Exchange Commission with defrauding investors.

In a formal complaint, the SEC alleges that Bankman-Fried raised more than $1.8 billion from investors since 2019 but diverted the funds to his personal crypto account.

“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. Compliance protects both those who invest on and those who invest in crypto platforms with time-tested safeguards, such as properly protecting customer funds and separating conflicting lines of business. It also shines a light into trading platform conduct for both investors through disclosure and regulators through examination authority. To those platforms that don’t comply with our securities laws, the SEC’s Enforcement Division is ready to take action.”

The charges were filed a day after Bankman-Fried was arrested in the Bahamas.

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This is a repub from The Center Square. 
Photo “Samuel Bankman-Fried” by Cointelegraph. CC BY 3.0.




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2 Thoughts to “SEC Charges FTX Founder with Fraud”

  1. Steve Allen

    This is going to blow up and be a much larger scandal for the American Political Ruling Class than the Jeffery Epstein coverup. SBF is/was the second largest contributor to the Democratic Party only behind George Soros. This is going to be very interesting.

  2. Don

    You would have to be an all day sucker to believe this cretin will see jail. Unless he upset hillary, then all bets are off 🙂