Sam Bankman-Fried has been charged by the U.S. Securities and Exchange Commission (SEC) with defrauding FTX investors. The former CEO is accused of “defrauding investors in the crypto asset trading platform FTX,” according to a report from the SEC.
Following previously filed accusations against the co-founder of FTX in December 2022, the news was announced today. Bankman-Fried, on the other hand, was charged with “concealing his transfer of FTX client funds to crypto trading business Alameda Research while soliciting more than $1.8 billion from investors,” according to today’s allegations.
Since November, there have been ongoing careful investigations into fraudulent and illegal activities on behalf of Bankman-Fried.
Sam Bankman-Fried has been accused by the SEC of scamming FTX investors. He “orchestrated a plot to defraud equity investors in FTX Trading Ltd,” according to their lawsuit. The charges also focus on how he misrepresented the platform to potential investors.
Bankman-Fried successfully raised more than $1.8 billion by using deceptive marketing to investors. According to the allegations, Bankman-Fried “presented FTX as a secure, responsible crypto asset trading platform, notably emphasizing FTX’s sophisticated, automated risk management to safeguard customer assets” during that investment round, according to the accusations.
Now that we know better, we can say that such guarantees were not founded on the accuracy of the platform’s accounting data.