Sam Bankman-Fried, the founder of FTX, has been charged with fraud by the SEC. He is being investigated regarding other securities law violations, as well as being charged with fraud regarding equity investors in FTX, according to the SEC.
The Southern District of New York's Attorney's office and the Commodity Futures Trading Commission filed charges against SBF in "parallel actions."
The founder of FTX was accused of engaging in a years-long fraud designed to hide from the regulators. The SEC took issue with the degree of exposure FTX had to the large holdings of liquid assets.
Also included in the complaint are allegations that FTX customer funds were employed via Alameda for other expenditures including VC investments, "lavish real estate purchases," and political donations, all of which have been documented in numerous reports.
In the release announcing the charges, the SEC Chair repeated his position that the platforms need to comply with securities laws. The Securities Act of 1933 and the Securities Exchange Act of 1934 are alleged to have been violated. If SBF is found guilty, he will be banned from future securities trading and prevented from acting as a corporate officer or board member.
The story is developing.
FTX founder Sam Bankman-Fried has been arrested in the Bahamas
All Rights Reserved © 2024
