'You can commit fraud in shorts and T-shirts in the sun,' says SDNY attorney on SBF indictment

Damian Williams, United States Attorney for the Southern District of New York, said the probe starring to charges against erstwhile FTX CEO Sam Bankman-Fried had been “very, precise fast” but prosecutors were “not done” with arrests.

In a property league livestream connected Dec. 13, Williams said the timing of the apprehension of Bankman-Fried had been based connected advancement from instrumentality enforcement officials, who authorized charges connected Dec. 7 and indicted the erstwhile FTX CEO connected Dec. 9, starring to a warrant being executed successful the Bahamas connected Dec. 12. An eight-count indictment released connected Dec. 13 revealed U.S. authorities alleged SBF had defrauded customers and investors astatine FTX, defrauded lenders astatine Alameda, and violated run concern laws with contributions to some Democratic and Republican lawmakers.

“Bankman-Fried knowingly defrauded customers of FTX done the misappropriation of lawsuit deposits to wage expenses and debts of a antithetic company,” said FBI adjunct manager successful complaint Michael Driscoll successful the aforesaid property conference. “In addition, Bankman-Fried executed deliberate transactions designed to obscure and disguise the misuse of lawsuit funds. He preyed connected his customers, the victims of this case, abusing the spot placed not lone successful his institution but successful himself arsenic the pb of that company.”

There volition beryllium a property league contiguous astatine 2 p.m. to denote the indictment of Samuel Bankman-Fried, laminitis of the now-bankrupt FTX cryptocurrency exchange. The property league volition beryllium unrecorded streamed astatine https://t.co/n1wN6uglOD pic.twitter.com/w3WetP45E6

— US Attorney SDNY (@SDNYnews) December 13, 2022

Williams said the probe successful the illness of FTX was ongoing, hinting astatine further announcements connected imaginable arrests successful the future. He called connected individuals who whitethorn person been progressive successful alleged amerciable actions astatine FTX and Alameda to “come spot america earlier we travel spot you.”

“You tin perpetrate fraud successful shorts and T-shirts successful the sun,” said Williams successful effect to a reporter’s question connected SBF fitting the illustration of a fraudster. “We are not done. Extradition is ongoing successful the Bahamas.”

Williams added:

“This was 1 of the biggest fiscal frauds successful American history.”

U.S. Attorney for the Southern District of New York Damian Williams addressing reporters connected Dec. 13

Related: SBF's lawyers petition bail successful Bahamas Magistrate Court pending extradition

Complaints from some the U.S. Securities and Exchange Commission and Commodity Futures Trading Commissions connected Dec. 13 followed the indictment against Bankman-Fried. The erstwhile FTX CEO had been expected to attest earlier a proceeding of the House Financial Committee connected Dec. 13 anterior to his announced arrest. U.S. lawmakers with the Senate Banking Committee volition besides research the illness of FTX successful a Dec. 14 hearing.