The founder of FTX found himself in a whirlwind of federal indictments today, with the Securities And Exchange Commission charging Sam Bankman-Fried with defrauding investors by using billions of dollars of client funds for undisclosed venture capital, and now also by the federal court in Manhattan, where SBF was charged with wire fraud conspiracy among many others.
Sam Bankman-Fried’s indictment in Manhattan
According to an indictment filed by the United States Attorney for the Southern District of New York, the FTX founder has been charged with eight counts of criminal offenses, including conspiracy and wire fraud, for the alleged misappropriation of customer money.
The indictment includes allegations of wire fraud, commodity fraud, securities fraud and money laundering against Bankman-Fried in connection with an alleged conspiracy to redirect FTX customer money to the Alameda Research crypto-currency hedge fund, owned by SBF.
In addition, he was also charged with violating campaign finance laws by conspiring with others to make corporate contributions to candidates and political committees that exceeded the $25,000 annual limit and donating on behalf of others to circumvent the limit.
The Fall of the Sam Bankman-Fried
The investigation was conducted by the Complex Fraud and Cybercrime Unit in the United States Attorney’s Office for the Southern District of New York.
Sam Bankman-Fried, once a poster boy for the crypto-currency industry, was taken into custody in the Bahamas on Monday night, less than a month after the dramatic collapse of the FTX exchange sent shockwaves through the crypto-currency world.
Tuesday was an eventful day for the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), as both agencies filed civil actions in New York federal court.
According to a representative of the U.S. Attorney’s Office, Bankman-Fried has not yet been extradited to the United States.