- US regulator accused Bankman-Fried of a $1.8 billion fraud.
- Bahamas police arrested SBF at the request of the US government.
- SBF parents, Stanford Law professors Bankman and Fried, will no longer teach from next year.
The Securities and Exchange Commission (SEC) of the United States has officially accused Sam Bankman-Fried (SBF), the former CEO of FTX, of defrauding 90 US-based investors of over $1.8 billion via underhand means.
Bloomberg revealed specific details of the lawsuit filed by the SEC to the Southern District of New York, stating that Bankman-Fried misappropriated billions of dollars of clients funds for personal use. It added that FTX orchestrated a scheme to defraud equity investors who bought in on the assumption that the crypto business was flourishing.
SEC chairman Gary Gensler said:
We allege that 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.
Moreover, the Royal Bahamas police arrested SBF at the request of the US government, based on a sealed indictment filed by the Department of Justice.
A statement from the Office of the Attorney General & Ministry of Leg ...
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