The U.S. Securities and Exchange Commission on Tuesday charged Sam Bankman-Fried, the embattled former CEO of cryptocurrency giant FTX, with defrauding investors.
NEW YORK --
Bankman-Fried had been arrested Monday in the Bahamas after federal prosecutors in New York filed criminal charges contained in a sealed indictment, according to the Royal Bahamas Police Force. A source familiar with the charges told ABC News that Bankman-Fried is facing a multi-count fraud indictment that comes one month after FTX filed a $32 billion bankruptcy.
Since the collapse of FTX, federal prosecutors in the Southern District of New York have been looking at Bankman-Fried, sources have told ABC News.The SEC said on Monday it had "authorized separate charges relating to his violations of securities laws, to be filed publicly tomorrow in SDNY." FTX, once a crypto darling, filed for bankruptcy protection in November after a rival cryptocurrency exchange announced it was backing out of a plan to acquire it.
John Ray, FTX's new CEO guiding the company through bankruptcy proceedings, is still expected to testify.
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