12/13/2022

FTX Case Among the Largest 'Financial Frauds' in U.S. History

Federal prosecutors charged Sam Bankman-Fried with fraud today

Federal prosecutors charged Sam Bankman-Fried with multiple counts of fraud on Tuesday, just hours after the Securities and Exchange Commission accused the disgraced FTX founder of orchestrating a scheme to defraud investors.

The indictments against Bankman-Fried accuse him moving billions of dollars illegally from FTX to Alameda. Prosecutors describe it as a “dirty money” scheme that helped fuel Bankman-Fried’s effort “to buy bipartisan influence and impact the direction of public policy in Washington.”

Meanwhile, the House Financial Services Committee forged ahead with a hearing into the cryptocurrency exchange’s recent implosion despite the arrest Monday night of Bankman-Fried, its star witness, who was taken into custody in the Bahamas after U.S. officials requested his extradition.

Please select this link to read the complete article from The Washington Post.