Former CEO of bankrupt crypto exchange FTX, SBF has been charged with fraud by the U.S. SEC

SBF arrested

Sam Bankman-Fried, the founder and former CEO of the now-bankrupt cryptocurrency exchange FTX, has been charged with fraud by the U.S. Securities and Exchange Commission (SEC).

The agency alleges that Bankman-Fried violated anti-fraud laws by concealing the transfer of FTX customer funds to his trading firm, Alameda Research LLC, while raising over $1.8 billion from equity investors.

The SEC added that Alameda was given special treatment by FTX through a “virtually unlimited line of credit,” while the exchange failed to disclose its exposure to Alameda’s risky holdings of “overvalued, illiquid assets.”

In addition, the complaint also alleges that Bankman-Fried used customer funds for undisclosed venture investments, lavish real estate purchases, and large political donations.

Furthermore, the announcement comes less than a day after the Bahamian police arrested Bankman-Fried at the request of U.S. authorities on reported charges of wire fraud, securities fraud, and money laundering.

The agency said that investigations into additional violations and other entities and persons related to the alleged misconduct are ongoing.


Roland is a Public Relations & Communications guru with an immense passion for the blockchain and crypto industry. A fusion of his expertise and passion led to the dawn of Optimisus in 2020.