Sam Bankman-Fried charged with fraud over FTX collapse

Sam Bankman-Fried was charged with fraud by the U.S. Securities and Exchange Commission over the collapse of FTX, the crypto exchange he founded. 

The former CEO was charged with “orchestrating a scheme to defraud equity investors in FTX Trading Ltd.,” according to an SEC statement. It said investigations into other securities law violations and other individuals are ongoing.

Bankman-Fried was arrested in the Bahamas yesterday, just one day before he was scheduled to testify virtually before the U.S. House Financial Services Committee for its first hearing on the collapse of the company.

Disclaimer: Beginning in 2021, Michael McCaffrey, the former CEO and majority owner of The Block, took a series of loans from founder and former FTX and Alameda CEO Sam Bankman-Fried. McCaffrey resigned from the company in December 2022 after failing to disclose those transactions.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source: https://www.theblock.co/post/194509/sam-bankman-fried-charged-with-fraud-over-ftx-collapse?utm_source=rss&utm_medium=rss