SEC Accuses Disgraced FTX Founder Sam Bankman-Fried of Orchestrating ‘Years-Long Fraud’
FTX founder and Democrat Super Donor Sam Bankman-Fried has been accused of orchestrating a “year-long fraud” by the Securities Exchange Commission.
Following reports that disgraced FTX founder Sam Bankman-Fried has been indicted on eight criminal charges including wire fraud and conspiracy by misusing customer funds, SBF has another headache as the SEC has levied separate charges against the Democrat super donor.
Bankman-Fried, 30, was arrested in the Bahamas, where he lived and ran FTX from, on Monday and is expected to appear in court in Nassau on Tuesday morning for an extradition hearing. The SEC also alleges that Bankman-Friend “orchestrated a years-long fraud” to conceal the diversion of customer funds to Alameda Research from FTX investors.
SEC Chair Gary Gensler said in a statement: “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.”
According to an indictment charge unsealed on Tuesday in the Southern District of New York, Bankman-Fried has been charged with wire fraud and several counts of conspiracy, including conspiracy to defraud investors, lenders, and the United States, commit securities and commodities fraud, money laundering, and violate campaign finance laws.
SEC official Gurbir Grewal commented: “We commend our law enforcement partners for securing the arrest of Sam Bankman-Fried on federal criminal charges. The Securities and Exchange Commission has separately authorized charges relating to Mr. Bankman-Fried’s violations of our securities laws, which will be filed publicly tomorrow in the Southern District of New York.”
Gurbir Grewal: We commend our law enforcement partners for securing the arrest of Sam Bankman-Fried on federal criminal charges. The SEC has authorized separate charges relating to his violations of securities laws, to be filed publicly tomorrow in SDNY. https://t.co/ON0LgY4mf4
— U.S. Securities and Exchange Commission (@SECGov) December 13, 2022
Rep. Maxine Waters (D-CA) said in a statement: “I am surprised to hear that Sam Bankman-Fried was arrested in the Bahamas at the direction of the United States Attorney for the Southern District of New York. The public has been waiting eagerly to get these answers under oath before Congress, and the timing of this arrest denies the public this opportunity.” SBF had initially dodged her call to testify.
“While I am disappointed that we will not be able to hear from Mr. Bankman-Fried tomorrow, we remain committed to getting to the bottom of what happened, and the Committee looks forward to beginning our investigation by hearing from Mr. John Ray III tomorrow.”
Read more at Decrypt here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan
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