US regulators have charged the founder and former CEO of failed cryptocurrency exchange FTX Trading, Samuel Bankman-Fried, for defrauding investors.
The Securities and Exchange Commission took the action on Tuesday, a day after Bankman-Fried was arrested in the Bahamas where the exchange was based.
The SEC says FTX Trading raised more than 1.8 billion dollars since May 2019, including 1.1 billion dollars from about 90 investors based in the US.
The commission also says although Bankman-Fried told investors that the exchange had measures to protect their assets in place, he concealed that their money was diverted to his hedge fund.
SEC Chair Gary Gensler said the commission alleges 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."
Law enforcement authorities in the state of New York have also charged the disgraced financier.
The Securities and Exchange Commission took the action on Tuesday, a day after Bankman-Fried was arrested in the Bahamas where the exchange was based.
The SEC says FTX Trading raised more than 1.8 billion dollars since May 2019, including 1.1 billion dollars from about 90 investors based in the US.
The commission also says although Bankman-Fried told investors that the exchange had measures to protect their assets in place, he concealed that their money was diverted to his hedge fund.
SEC Chair Gary Gensler said the commission alleges 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."
Law enforcement authorities in the state of New York have also charged the disgraced financier.
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Summary
US Securities and Exchange Commission (SEC) has charged Samuel Bankman-Fried, founder of failed crypto exchange FTX Trading, for defrauding investors. The SEC claims that despite assurances about asset protection measures, Bankman-Fried diverted investor funds to his hedge fund. The SEC alleges he
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ID: 5462ea30-db44-4ae6-9bcf-b880c061c33a
Category ID: nhk
URL: https://www3.nhk.or.jp/nhkworld/en/news/20221214_06/
Date: Dec. 14, 2022
Created: 2022/12/14 07:23
Updated: 2025/12/09 10:26
Last Read: 2022/12/14 07:51