SEC Says Bankman-Fried Defrauded Investors of $1.8 Billion
- FTX co-founder ‘built a house of cards,’ SEC’s Gensler says
- Sam Bankman-Fried is also facing US criminal charges
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FTX co-founder Sam Bankman-Fried was accused by US regulators of carrying out a multi-year scheme to defraud investors.
The Securities and Exchange Commission said on Tuesday that Bankman-Fried, who was arrested on Monday in the Bahamas and is facing criminal charges in the US, raised more than $1.8 billion from investors. The SEC also said he concealed risks and FTX’s relationship with his trading firm Alameda Research, and used commingled customer funds.