SEC states Sam Bankman-Fried “concealed his diversion of FTX customers’ funds to crypto trading firm Alameda Research while raising more than $1.8 billion from investors The Securities and Exchange Commission on Dec. 13, charge SBF with “orchestrating a scheme to defraud equity investors in FTX Trading Ltd. (FTX)” Since May, 2019, FTX raised over $1.8 billion from equity investors, “including $1.1 billion from approximately 90 U.S.-based investors.” The SEC complaint alleges SBF orchestrated a “years-long fraud to conceal from FTX’s investors” (1) the undisclosed diversion of FTX customers’ funds to Alameda Research LLC, his privately-held crypto hedge fund; (2) the undisclosed special treatment afforded to Alameda on the FTX platform, including providing Alameda with a virtually unlimited “line of credit” funded by the platform’s customers and exempting Alameda from certain key FTX risk mitigation measures; and: (3) undisclosed risk stemming from FTX’s exposure to Alameda’s significant holdings of overvalued, illiquid assets such as FTX-affiliated tokens. The complaint further alleges that Bankman-Fried used commingled FTX customers’ funds at Alameda to make undisclosed venture investments, lavish real estate purchases, and large political donations. SEC charge SBF with violation of anti-fraud provisions of the Securities Act 1933 and the Securities Exchange Act of 1934.

More details to come…

The post SEC charges SBF with defrauding investors appeared first on CryptoSlate.

Bitcoin price in Telegram @btc_price_every_hour

467 +