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

The United States Securities and Exchange Commission (SEC) has filed charges against Sam Bankman-Fried, the erstwhile CEO of now-bankrupt crypto speech 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 ailment seeks injunctions against aboriginal securities instrumentality usurpation that prohibits Bankman-Fried from participating successful the issuance, purchase, offer, oregon merchantability of immoderate securities but for his ain idiosyncratic account.

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SEC charged Bankman-Fried for orchestrating a strategy to defraud equity investors successful FTX Trading Ltd. (FTX). The regulatory assemblage noted that the erstwhile CEO concealed his "diversion of FTX customers’ funds to crypto trading steadfast Alameda Research portion raising much than $1.8 cardinal from investors."

We allege that Sam Bankman-Fried built a location of cards connected a instauration of deception portion telling investors that it was 1 of the safest buildings successful crypto," said SEC Chair Gary Gensler.

The caller charges against the erstwhile CEO travel conscionable a time aft his arrest by Bahamian authorities astatine the petition of U.S. authorities.  Just hours aft Bankman-Fried's arrest, SEC announced they were preparing to record charges against the FTX co-founder, which volition be separate from the ones starring to his astir caller arrest in the Bahamas.