NEW: Sam Bankman-Fried accused of fraud by SEC ahead of criminal charges
at a House Financial Services Committee hearing, Bahamian authorities arrested Bankman-Fried at the request of U.S. prosecutors. The two countries have an extradition treaty."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," SEC Chair Gary Gensler said in a statement. "The alleged fraud committed by Mr.
The SEC wants a federal judge to force SBF to pay disgorgement penalties and to prevent him from participating in the crypto industry, though he could make personal crypto investments.In early November, after facing a sudden spike in customer withdrawal, Bahamas-based crypto exchange FTX found itself with insufficient funds to cover the requests.
While Bankman-Fried attempted to secure emergency financing over the next couple of days, the company filed for bankruptcy by the end of the week and he stepped down from his role.he largely blames poor risk management and internal controls.Editor's note: This is a developing story. Please check back for updates.
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