SEC charges Bankman-Fried of 'massive, years-long fraud'

Sam Bankman-Fried engaged in “corruption, corporate mismanagement,” according to Anthony Georgiades.

Co-founder of Pastel Network Anthony Georgiades claims “it'll take time to untangle the co-mingled” assets of slandered FTX founder SBF.

The SEC has stated that they will file charges against Samuel Bankman-Fried for alleged violations of the Securities Act and the Securities Exchange Act. On Tuesday, they charged Bankman-Fried, alleging that he had engaged in “a scheme to defraud equity investors in FTX Trading Ltd,” the company he founded to trade cryptocurrencies. The operation was “a massive, years-long fraud,” according to the court document.

“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. The SEC's Enforcement Division is ready to take action to those platforms that don’t comply with our securities laws.”