The U.S. Securities and Exchange Commission has charged the former CEO of failed cryptocurrency firm FTX with orchestrating a scheme to defraud 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. attorneys office in New York said Monday, Dec. 12. , orchestrated a years-long fraud by diverting investors’ funds to his private hedge fund and using them to make venture investments, lavish real estate purchases and large political donations, the U.S.
Bankman-Fried was arrested Monday in the Bahamas, where he has been living, after the U.S. filed criminal charges that will be made public Tuesday, according to U.S. Attorney Damian Williams. The SEC complaint is separate. A spokesman for Bankman-Fried had no comment Monday evening. He has a right to contest his extradition, which could delay but probably not stop his transfer to the U.S.
Bankman-Fried was under criminal investigation by U.S. and Bahamian authorities following the collapse last month of FTX, which, when it ran out of money after the cryptocurrency equivalent of a bank run. Bankman-Fried was one of the world’s wealthiest people on paper; at one point his net worth reached $26.5 billion, according to Forbes. He was a prominent personality in Washington, donating millions of dollars toward mostly left-leaning political causes and Democratic political campaigns, though he also gave money to Republicans. FTX grew to become the second-largest cryptocurrency exchange in the world.
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