SEC Charges SBF With Defrauding Investors In FTX

Foresight News, FTX founder Samuel Bankman-Fried (SBF) was charged by the US Securities and Exchange Commission (SEC) with defrauding investors in FTX. The defendant concealed that he transferred funds from FTX clients to Alameda Research while raising more than $1.8 billion in funding, including about $1.1 billion from about 90 U.S. investors. The SEC is investigating additional violations of securities laws and other entities and individuals related to the alleged misconduct. The SEC stated that “FTX operated under the semblance of legitimacy created by SBF, which claimed to have a dedicated risk engine and adhere to specific investor protection principles, but this disguise was weak and deceptive. SBF violated the Securities Act of 1933 and the Securities Act of 1934.” Under the anti-fraud provisions of the Securities Exchange Act, the SEC's complaint seeks an injunction barring SBF from participating in the offering, purchase, offer, or sale of any securities (except for his own personal account), forfeiture of SBF's ill-gotten gains, and civil penalties.