Sam Bankman Fried (SBF), former CEO of FTX, who was arrested in the Bahamas yesterday, has been formally charged with fraud by the US Securities and Exchange Commission (SEC).
In a report recently shared by the SEC, the SBF officially accused of fraud. yesterday evening in the Bahamas This statement, which came while the ex-CEO, who was arrested, was expected to be extradited to the USA, may be a clear indication that the end of SBF will not be good at all. In the report published by the authorities, “SBF was at the head of a managed fraud mechanism for many years.”, it was stated that the customer used their funds for their own interests.
“We argue that Sam Bankman-Fried built a “house of cards” on the foundation of deception while telling investors that one of the safest places in crypto is FTX. We hold Mr. Bankman-Fried responsible for fraudulently collecting billions of dollars from investors in FTX and misappropriating funds belonging to FTX’s trading clients.
“The world believed his lies”
In this report of the SEC, SBF is not only responsible for its actions in FTX, but also as a sister company. Alameda held responsible for their attitudes towards it. SEC, “Even after Caroline Ellison became CEO of Alaleda, it was always the SBF that made the decision later in the company.” he stated. Underscoring the SBF’s strong bond with Alameda, which was at the center of the bankruptcy, the SEC claimed that SBF always had access to all detailed records, including the Alameda database.
On the other hand, the SEC report, which states that Alameda is managed in a sloppy manner, announced that the company has never been able to meet its credit obligations.
The SEC said that SBF has over the years deceived people and gained trust by portraying itself as the pioneer of the crypto community, then using that trust for fraudulent purposes.
The world believed his lies and invested billions of dollars in FTX believing their assets were safe.