Sam Bankman-Fried indictment details charges against former crypto boss

Sam Bankman-Fried indictment details charges against former crypto boss

The U.S. has requested Bankman-Fried's extradition to the U.S. He was arrested in the Bahamas, where he resides, and FTX is based.


Federal prosecutors in New York unsealed the indictment against disgraced former FTX CEO Sam Bankman-Fried on Tuesday, revealing the specific charges he faces in the U.S.

The Southern District of New York has charged Bankman-Fried with wire fraud; conspiracy to commit wire fraud; securities fraud; conspiracy to commit securities fraud, and money laundering.

The U.S. has requested Bankman-Fried's extradition to the U.S. He was arrested in the Bahamas, where he resides, and FTX is based.

Sam Bankman-Fried's House hearing

Sam Bankman-Fried's testimony before the House of Representatives is now up in the air following his arrest in the Bahamas and criminal charges from multiple U.S. government sources.

Bankman-Fried had agreed to testify remotely before the House Financial Services Committee led by Chairwoman Maxine Waters but was arrested in the Bahamas on Monday evening. He faces charges from federal prosecutors in New York and another fraud complaint from the Securities and Exchange Commission (SEC).

The SEC complaint, filed Tuesday, accuses Bankman-Fried of carrying out “a scheme to defraud equity investors in FTX Trading Ltd,” his cryptocurrency trading platform. The court filing describes the alleged operation as “a massive, years-long fraud.”

“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.”

SEC Chair Gary Gensler
SEC Chair Gary Gensler

Bankman-Fried had been scheduled to appear remotely before the House committee, but is now unlikely to appear. The committee pre-released the written testimony of current FTX CEO John Ray III, which provides insight into what will likely be discussed.

Ray took over the company following Bankman-Fried's resignation. He has handled multiple corporate collapses in the past, and states that FTX is a prime example of failure in corporate governance.

Disclaimer: Nothing on this site should be construed as a financial investment recommendation. It’s important to understand that investing is a high-risk activity. Investments expose money to potential loss.

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