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.

Recommended
Price Analysis

Best Crypto Presales To Invest In September 2025 – Top Upcoming Presale Tokens

Best Crypto AI Trading Bots In 2025

Top Meme Coins To Buy In September 2025

Ashish Kumar

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and 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.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.