Samuel Bankman-Fried, also known as SBF, has been indicted by a federal grand jury in Manhattan on charges of wire fraud, commodities fraud, securities fraud, money laundering, and campaign finance violations. The indictment stems from allegations that Bankman-Fried, the founder of international cryptocurrency exchange FTX and cryptocurrency hedge fund Alameda Research, engaged in a scheme to misappropriate billions of dollars of customer funds and deceive investors and lenders. Bankman-Fried is accused of using customer funds for personal use, making investments, and making political contributions to federal candidates and committees, as well as using the funds to repay loans owed by Alameda Research. He is also accused of concealing his misuse of customer deposits from lenders and equity investors in FTX. Bankman-Fried was arrested in the Bahamas and is set to appear before a Bahamian magistrate judge.
“One month ago, FTX collapsed, causing billions of dollars in losses to its customers, lenders, and investors,” said U.S. Attorney Damian Williams for the Southern District of New York. “Now, a federal grand jury in New York has indicted the former founder and chief executive officer of FTX and charged him with crimes related to the phenomenal downfall of that one-time cryptocurrency exchange, including fraud on customers, investors, lenders, and our campaign finance system. As today’s charges make clear, this was not a case of mismanagement or poor oversight, but of intentional fraud, plain and simple.”
“As the indictment today alleges, Bankman-Fried knowingly defrauded the customers of FTX.com through the misappropriation of the customer deposits to pay expenses and debts of a different company he also owned as well as make other investments,” said Assistant Director Michael J. Driscoll of the FBI New York Field Office. “If you deceive and defraud your customers, the FBI will be persistent in our efforts to bring you to justice.”
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