U.S. prosecutors charged Sam Bankman-Fried, the ex-CEO of cryptocurrency exchange FTX, with a host of financial crimes and campaign finance violations, alleging he played a role in the collapse of FTX and hid its problems from the public and investors.
FILE - The FTX Arena logo is seen where the Miami Heat basketball team plays on Nov. 12, 2022, in Miami. The former CEO of failed crypto firm FTX Sam Bankman-Fried has been arrested in the Bahamas at the request of the U.S. government, the U.S. attorney’s office in New York said Monday, Dec. 12.
Bankman-Fried was arrested Monday in the Bahamas at the request of the U.S. government, which charged him with eight criminal violations, ranging from wire fraud to money laundering to conspiracy to commit fraud. Bankman Fried, one of the largest political donors this year, was also charged with making illegal campaign contributions.
Bankman-Fried has fallen hard and fast from the top of the cryptocurrency industry he helped to evangelize. FTX filed for bankruptcy on Nov. 11, when it ran out of money after the cryptocurrency equivalent of a bank run. The criminal indictment against Bankman-Fried and “others” at FTX is on top of civil charges announced Tuesday by the Securities and Exchange Commission and the Commodity Futures Trading Commission. The SEC alleges Bankman-Fried defrauded investors and illegally used their money to buy real estate on behalf of himself and his family.
John Ray III told members of the House Financial Services Committee that the collapse of FTX, resulting in the loss of more than $7 billion, was the culmination of months, or even years, of bad decisions and poor financial controls.He added: “This is just plain, old-fashioned embezzlement, taking money from others and using it for your own purposes.”
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