NewsletterBreaking: US SEC Charges SBF Of Defrauding Investors, Political Donations
SBF Arrest Update: The U.S. Securities and Exchange Commission (SEC) in a release mentioned that it has pressed multiple charges against Sam Bankman-Fried (SBF), former CEO of collapsed crypto exchange, FTX. However, SBF was arrested in the Bahamas a day before he was due to testify before Congress.
SBF ran a fraud scheme?
As per the release, the commission has accused SBF of organizing a scheme to defraud equity investors via FTX trading Ltd. He also violated other securities law violations and into other entities. While SBF has also been accused of defrauding equity investors, using billions of dollars of customer funds for undisclosed venture capital.
However, SEC’s allegation list doesn’t end here as SBF has also been accused of large scale real estate purchases, and massive political donations. The release mentions that FTX based in the Bahamas raised more than $1.8 billion from equity investors since at least May 2019. This includes approx $1.1 billion from around 90 US based investors.
How does FTX ex-CEO cheat investors?
As per SEC, FTX’s former CEO promoted FTX as safe and a responsible digital asset trading platform. It is alleged that SBF organized a years long fraud and hide it from the investors. He didn’t disclose the diversion of FTX customers’ funds to its sister firm, Alameda Research.
SBF gave special treatment to Alameda Research on its crypto exchange. This includes giving Alameda an unlimited line of credit. While he didn’t disclose the risk related to FTX’s exposure to Alameda’s holdings.
Meanwhile, FTX’s former CEO allegedly used customers’ funds at Alameda in order to make several venture investments. He purchased lavish real estate while giving out huge political donations.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- WhiteBIT Launches a New Listing Support Program With Integrated Marketing and Liquidity Tools
- Democrats Demand Probe Into Trump-Linked WLFI Over Token Sales To Illicit Actors
- El Salvador Makes Its Largest Bitcoin Purchase Ever Despite Rising Market Sell-Off
- Mt Gox Moving $950M in Bitcoin Sparks Panic of Crash to $56K Realized Price
- XRP Supply in Profit Hits Lowest Level Since Nov 2024 Despite Price Gains: Glassnode
- Is Dogecoin Price Set for a Recovery as Grayscale ETF Speculation Intensifies?
- Will MOODENG Reach $0.1 and MEW Hit $0.002 After Robinhood Listing?
- What’s Next for Cardano Price After Breaking Below Key Support Level?
- Pi Coin Price Could Jump 30%, But There’s a Catch
- Expert Sees XRP Price Rally if it Holds Key Support Ahead of Ripple ETF Launch
- Chainlink Price Eyes Breakout as Whales Scoop 150K $LINK
