Boontje comes for his wages. Former FTX CEO Sam Bankman-Fried was detained by police in the Bahamas yesterday. reports the New York Times This would have happened at the request of the US government. He is suspected of committing fraud and even money laundering, among other things.
FTX ex-CEO SBF in handcuffs
Following the catastrophic demise of ftx have several agencies in the US including the Securities and Exchange Commission (SEC) and the Department of Justice, investigations opened. It is now known that at least the SEC also wants criminal prosecution of SBF.
The American regulator accuses SBF of committing large-scale fraud. If SBF is also convicted in court, he faces a prison sentence of up to 20 years. However, it is not that far yet of course.
“The Securities and Exchange Commission today charged Samuel Bankman-Fried with creating a scheme to defraud investors in FTX Trading Ltd. (FTX) to light up. (FTX),” reads one official statement from the SEC.
The SEC is suing the FTX CEO
According to the SEC, FTX has spent years defrauding customers while projecting an image of trust. FTX allegedly misled customers with sweet talk. In addition, it was not made clear what the relationship of FTX was with sister company Alameda Research. User credits were transferred from FTX to Alameda, without customers being notified.
“We argue that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors it was one of the safest buildings in crypto,” said SEC Chairman Gary Gensler. “The alleged fraud committed by Mr. Bankman-Fried is an urgent demand for crypto platforms to comply with our laws.”
Although SBF was taken into custody by the police in the Bahamas, it is likely that he will soon be extradited to the United States and will face trial here.