SBF Arrested, Faces Fraud Allegations from US SEC
In a Tuesday press release , the US Securities and Exchange Commission announced charges against disgraced FTX founder Sam Banjman-Fried. The charges come shortly after Bahamian authorities took custody of the ex-CEO of the now-defunct exchange. SBF Falsely Promoted FTX The SEC’s complaint pointed out that Bankman-Fried had pushed his exchange platform as a reliable option for crypto trading. As such, since May 2019, the Bahamas-based firm was able to raise over $1.8B from equity investors. About $1.1B of this reportedly came from roughly 90 investors who were US residents. However, the release noted, SBF was in truth running a multi-year scheme to defraud FTX investors. The SEC alleged that Bankman-Fried had engaged in special treatment toward FTX sister company, crypto hedge fund Alameda Research LLC. Indeed, the FTX founder had secretly diverted investor funds to Alameda over the years, said the SEC. The filing claimed the crypto hedge fund had a near-limitless credit lin...