Cryptocurrency firm FTX founder charged with fraud

The Securities and Change Fee on Tuesday charged the founding father of cryptocurrency agency FTX with defrauding traders. The SEC’s fees towards former FTX CEO Sam Bankman-Fried are along with separate prison fees that led to his arrest Monday evening by police within the Bahamas. FTX filed for chapter final month after about one million depositors have been unable to entry their funds. The SEC is accusing Bankman-Fried of diverting buyer property to his privately-held crypto fund with out telling them. The SEC grievance additionally alleges that he lied to traders by calling the agency one of many most secure, most accountable crypto companies with refined safety.

What has Bankman-Fried stated? Bankman-Fried has stated he didn’t knowingly commit fraud. He has made errors and dangerous investments, he stated, however he believes the hundreds of thousands of consumers will finally be made entire. Bankman-Fried was held by Bahamian authorities Tuesday morning. He has the correct to contest his extradition however that can doubtless not cease his switch to the USA, because the two international locations have an extradition settlement included in a treaty. 

Dig deeper: Learn Eric Erickson’s column in WORLD Opinions on Bankman’s response to the allegations.