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SBF Charged with Fraud, Money Laundering Conspiracy

Federal prosecutors in Manhattan published an eight-count indictment Tuesday morning against Samuel Bankman-Fried, the founder and former chief executive of collapsed cryptocurrency exchange FTX, following his arrest in the Bahamas on Monday.

The 13-page charging document lacks details on Bankman-Fried’s alleged violations but provides a rough sketch of the government’s case against him and other, unnamed co-conspirators. Bankman-Fried, 30, is charged with wire fraud, conspiracy to commit wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering and conspiracy to violate federal campaign finance laws.

Separately, the Securities and Exchange Commission filed a civil complaint accusing Bankman-Fried of defrauding investors and customers by repeatedly misrepresenting the relationship between FTX and Alameda Research, a hedge fund that allegedly engaged in high-risk trades with loans backed by clients’ deposits.

Bankman-Fried, who was arrested after stating he would testify before the House Financial Services Committee in Washington, D.C., on Tuesday remotely from the Bahamas rather than in person, “used Alameda as his personal piggy bank to buy luxury condominiums, support political campaigns and make private investments, among other uses,” the SEC alleged Tuesday.

“None of this was disclosed to FTX equity investors or to the platform’s trading customers.”

Moneylaundering.com may update this coverage as more information becomes available.
Topics : Anti-money laundering , Cryptocurrencies , Fraud
Source: U.S.: SEC , U.S.: Department of Justice
Document Date: December 13, 2022