Sam Bankman-Fried Set To Face Criminal Charges For Fraud

In yet another setback for FTX founder Sam Bankman-Fried, authorities in the U.S. are likely to take the legal route. The office of Manhattan US attorney is preparing criminal charges against Sam Bankman-Fried and the crypto exchange FTX. The charges would likely be for defrauding customers. Earlier, the new CEO of the exchange John Ray criticized SBF’s management style in a court filing.

Criminal Charges Against Sam Bankman-Fried

The Manhattan authorities are likely looking into the alleged diversion of funds between FTX and Alameda Research. Charles Gasparino, a Fox News Correspondent, quotes sources close to the office of Manhattan US attorney. Apparently the attorney’s office is looking to prepare charges by the end of 2022. The case charges would likely be around the misuse of customer funds.

“Sources close to Manhattan US Attorney say office is looking to prepare charges by the end of the year over FTX scandal following further disclosures of Sam Bankman-Fried’s alleged misuse of customer funds and as authorities in Bahamas look to take lead on case.”

This is on top of the SEC probe over the possibility of misuse of FTX US funds. Also, the White House authorities recently said they were closely looking at the FTX situation. A White House press secretary said cryptocurrencies are harming the lives of average Americans. The White House views crypto oversight as an important issue, they added. Recent events in crypto highlight the need for crypto regulation, the secretary added.

Bankruptcy Proceedings

As part of the chapter 11 bankruptcy proceedings, the company’s new FTX CEO John Ray expressed his stance on the company’s situation. He said the situation is unprecedented and nothing like he saw with any corporate failure in his long career. In a court filing, Ray described the situation as “a complete failure of corporate controls.” He added there was a complete absence of trustworthy financial information.

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

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