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SBF Built A House Of Cards, Says SEC Chair

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The Securities and Exchange Commission, chairperson, Gary Gensler charged FTX’s former CEO Sam Bankman Fried with indulging in fraudulent activity. Garry Gensler slams SBF over defrauding customers and said “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.”

SBF uses customer funds for real estate purchases

As per the accusation, former FTX founder SBF concealed information about the company’s money-mixing practices with Alameda Research, the “special treatment” accorded to Alameda, and the use of client cash for business ventures, political contributions, and “lavish real estate purchases.”

SEC chairman calls SBF’s fraud a wake-up call

SEC Chairman also targets other crypto exchanges and calls SBF‘s fraud a wake-up call. In addition to this, he also urges other crypto firms to comply with laws. He also highlighted the importance of compliance by mentioning that it will protect both those who invest on and those who invest in crypto platforms.

Notably, after the arrest of the FTX co-founder Senator, the attorney general of the Bahamas Sen. Ryan Pinder KC stated that US government is “likely” to request Sam Bankman-extradition.

Notably, the US and the Bahamas government have an extradition agreement according to which suspects who face accusations would be punishable by more than a year in jail in either nation may be sent back to US.

 

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