Sam Bankman-Fried Arrested in the Bahamas and Charged by SEC with Defrauding FTX Investors

Today, The Securities and Exchange Commission charged Sam Bankman-Fried, the disgraced CEO of fallen crypto exchange FTX, with orchestrating a scheme to defraud investors, wire fraud, and a slew of other charges following his arrest in The Bahamas just last night.

SBF was arrested on Monday in the Bahamas after federal prosecutors in New York filed criminal charges contained in a now unsealed indictment, according to the Royal Bahamas Police Force.

“We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto,” said SEC Chair Gary Gensler.

According to the indictment, Sam was charged with eight counts, ranging from wire fraud to commodities fraud, securities fraud, money laundering, and even conspiracy to commit fraud on the United States.

“FTX operated behind a veneer of legitimacy Mr. Bankman-Fried created by, among other things, touting its best-in-class controls. But as we allege in our complaint, that veneer wasn’t just thin, it was fraudulent,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement

The effort to gain public approval despite his wrongdoings is finally over. Do you think FTX customers, lenders, and investors will ever be whole? Let us know in the comments below. 👇🏽