Posted on Dec 13, 2022
Bankman-Fried, disgraced former CEO of FTX crypto exchange, is charged with fraud
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https://www.npr.org/2022/12/12/ [login to see] /bankman-fried-ceo-ftx-crypto-exchange-arrested-bahamas-charges-sdny
Sam Bankman-Fried, the notorious former CEO of crypto exchange FTX, is facing federal fraud charges, accused of misleading investors and using billions of dollars from his customers for his own ends. He was arrested in the Bahamas, where he lives, the office of the attorney general of The Bahamas said on Monday night.
Bankman-Fried's promise of using sophisticated risk measures to protect FTX customers was part of a long-running fraud, authorities say, repeatedly calling his platform a house of cards.
Bankman-Fried is accused of funneling customers' money to his privately held crypto hedge fund, and using their capital "to make undisclosed venture investments, lavish real estate purchases, and large political donations," the Securities and Exchange Commission said.
The SEC announced a sweeping civil complaint against Bankman-Fried on Tuesday, with Gurbir Grewal, the agency's head of enforcement, saying FTX hid its actions behind a "veneer of legitimacy" that was fraudulent.
Sam Bankman-Fried, the notorious former CEO of crypto exchange FTX, is facing federal fraud charges, accused of misleading investors and using billions of dollars from his customers for his own ends. He was arrested in the Bahamas, where he lives, the office of the attorney general of The Bahamas said on Monday night.
Bankman-Fried's promise of using sophisticated risk measures to protect FTX customers was part of a long-running fraud, authorities say, repeatedly calling his platform a house of cards.
Bankman-Fried is accused of funneling customers' money to his privately held crypto hedge fund, and using their capital "to make undisclosed venture investments, lavish real estate purchases, and large political donations," the Securities and Exchange Commission said.
The SEC announced a sweeping civil complaint against Bankman-Fried on Tuesday, with Gurbir Grewal, the agency's head of enforcement, saying FTX hid its actions behind a "veneer of legitimacy" that was fraudulent.
Bankman-Fried, disgraced former CEO of FTX crypto exchange, is charged with fraud
Posted from npr.org
Fraud
Crime
Posted >1 y ago
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PO1 William "Chip" Nagel
..."FTX was once seen as the face of the industry, a company reported to be worth $32 billion that attracted celebrity endorsements and major sports sponsorships. Bankman-Fried was seen as a crypto wunderkind who graced the cover of Forbes and Fortune and had emerged as a major Democratic donor.
But last month, after a crypto-focused news site published the balance sheet of an investment firm also owned by Bankman-Fried, FTX experienced the equivalent of a bank run: Customers and observers questioned whether its loans and investments were worth more than its debts. They also questioned whether the company could pay people trying to withdraw funds.
In a matter of days, Bankman-Fried resigned and the company filed for bankruptcy protection. Speaking at The New York Times DealBook Summit on Nov. 30, Bankman-Fried said he didn’t “try to commit fraud on anyone.”
CORRECTION (Dec. 13, 2022, 7:55 a.m.): An earlier version of this article misstated how much Bankman-Fried raised from equity investors. It was $1.8 billion, not $1.8 million."
..."FTX was once seen as the face of the industry, a company reported to be worth $32 billion that attracted celebrity endorsements and major sports sponsorships. Bankman-Fried was seen as a crypto wunderkind who graced the cover of Forbes and Fortune and had emerged as a major Democratic donor.
But last month, after a crypto-focused news site published the balance sheet of an investment firm also owned by Bankman-Fried, FTX experienced the equivalent of a bank run: Customers and observers questioned whether its loans and investments were worth more than its debts. They also questioned whether the company could pay people trying to withdraw funds.
In a matter of days, Bankman-Fried resigned and the company filed for bankruptcy protection. Speaking at The New York Times DealBook Summit on Nov. 30, Bankman-Fried said he didn’t “try to commit fraud on anyone.”
CORRECTION (Dec. 13, 2022, 7:55 a.m.): An earlier version of this article misstated how much Bankman-Fried raised from equity investors. It was $1.8 billion, not $1.8 million."
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