Regulation

SEC charges former FTX CEO SBF for defrauding investors a day after his arrest

The US Securities and Alternate Fee (SEC) has filed fees in opposition to Sam Bankman-Fried, the previous CEO of now-bankrupt crypto alternate FTX. 

The SEC has charged Bankman-Fried with violating the anti-fraud provisions of the Securities Act of 1933 and the Securities Alternate Act of 1934. The SEC’s criticism seeks injunctions in opposition to future securities legislation violation that prohibits Bankman-Fried from collaborating within the issuance, buy, provide or sale of any securities apart from his personal private account.

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SEC charged Bankman-Fried for orchestrating a scheme to defraud fairness buyers in FTX Buying and selling Ltd. (FTX). The regulatory physique famous that the previous CEO hid his “diversion of FTX prospects’ funds to crypto buying and selling agency Alameda Analysis whereas elevating greater than $1.8 billion from buyers:”

“We allege that Sam Bankman-Fried constructed a home of playing cards on a basis of deception whereas telling buyers that it was one of many most secure buildings in crypto,” mentioned SEC Chair Gary Gensler.”

The recent fees in opposition to the previous CEO come only a day after his arrest by Bahamian authorities on the request of U.S. authorities.  Simply hours after Bankman-Fried’s arrest, SEC introduced they have been making ready to file fees in opposition to the FTX co-founder, which can be separate from those resulting in his most up-to-date arrest within the Bahamas.

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