SEC charges FTX CEO SBF for defrauding investors a day after his arrest

SEC has filed charges against the former CEO Sam Bankman-Fried, accusing him of defrauding U.S. customers and concealing the diversion of customers’ funds.

The United States Securities and Exchange Commission (SEC) has filed charges against Sam Bankman-Fried, the former CEO of now-bankrupt crypto exchange FTX. 

The SEC has charged Bankman-Fried with violating the anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC’s complaint seeks injunctions against future securities law violation that prohibits Bankman-Fried from participating in the issuance, purchase, offer, or sale of any securities except for his own personal account.

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SEC charged Bankman-Fried for orchestrating a scheme to defraud equity investors in FTX Trading Ltd. (FTX). The regulatory body noted that the former CEO concealed his “diversion of FTX customers’ funds to crypto trading firm Alameda Research while raising more than $1.8 billion from investors.”

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,” said SEC Chair Gary Gensler.

The fresh charges against the former CEO come just a day after his arrest by Bahamian authorities at the request of U.S. authorities.  Just hours after Bankman-Fried’s arrest, SEC announced they were preparing to file charges against the FTX co-founder, which will be separate from the ones leading to his most recent arrest in the Bahamas.