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The founder of FTX has been charged with eight counts of fraud by the New York Prosecutor’s Office

-The founder of the FTX cryptocurrency platform was detained in the Bahamas at the request of the United States.

-All the news about the bankruptcy of FTX, one of the largest cryptocurrency exchanges.

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The founder of the ill-fated FTX cryptocurrency platform, Sam Bankman-Fried, detained in the Bahamas, has been formally charged with eight counts, including wire fraud, money laundering, and violation of political campaign finance laws.

According to the document made public by the Prosecutor’s Office of the Southern District of New York, which this Monday requested his arrest and extradition, the eight charges are mainly related to the idea of ​​fraud, or conspiracy to defraud FTX clients, lenders; product fraud or securities fraud, among others.

The first count (conspiracy to defraud clients) details that the defendant and his associates “knowingly and intentionally devised a scheme and plan to defraud, obtain money and property using false or fraudulent pretenses, representations, and promises,” and “agreed with others to deceive FTX.com customers by misappropriating their deposits and using them to pay expenses and debts of Alameda Research.”

Alameda Research was the investment firm created by Bankman-Fried himself, in which he allegedly used billions of dollars from FTX clients without their knowledge to carry out risky operations.

But the charges also have a political dimension: one of them accuses him of “committing crimes against the United States by engaging in violations of federal laws relating to the preparation, receipt, and reporting of contributions, donations, or expenses” incurred in federal elections, although he does not cite which candidates he directed his donations to.

According to different journalistic reports, Bankman-Fried financed both Democratic and Republican candidates, although, in the case of the Democrats, he did so openly and in the case of the Republicans with front signatures.

The Prosecutor’s document concludes that the accused “will deliver to the United States (…) every one of the properties, real estate or personal, obtained or derived from procedures identifiable with the commission of the aforementioned crimes, including and not limited to the sum of money in US currency that represents the total of products identifiable with the commission of said crimes.”

Cooperator with Justice

The New York Times assures that Bankman-Fried cooperated during the arrest, according to a person familiar with the case, and in the next few hours, he will appear before the Court of First Instance in Nassau, the capital of the Bahamas.

The disgraced young financier also faces another lawsuit, in this case from the United States Securities and Exchange Commission (SEC), which accuses him of orchestrating fraud against investors.

“Sam Bankman-Fried built a house of cards based on deception while telling investors that it was one of the safest structures in cryptocurrencies,” SEC Chairman Gary Gensler said in a statement.

FTX declared bankruptcy on November 11, and at the end of that same month, the company’s new managers appeared for the first time before the bankruptcy court of the state of Delaware (USA) to begin the restructuring process.

Theft of Company Assets

Lawyers for the new board and its current manager, John Ray, maintain that a “substantial amount” of the company’s assets may have been stolen or are missing.

The new managers have also denounced that the company had a “total absence of corporate controls” and a lack of “reliable financial information.”

The platform, which was once valued at $32 billion, could have more than a million creditors around the world. So far, the company has admitted that it owes more than $3 billion to its top 50 creditors.

However, Bankman-Fried blames the bankruptcy in part on the massive sale of cryptocurrencies that occurred at the beginning of the year. For the company’s founder, that sale reduced FTX’s guarantee by half, to about $30 Billion.

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