FTX founder charged with fraud in crypto exchange’s collapse

Canada Global (Web News) Sam Bankman-Fried, the founder and former CEO of FTX, was charged on Tuesday with violating campaign financing regulations and engaging in fraud, according to US federal authorities.

Tuesday marked the 30-year-old Bankman-first Fried’s in-person public appearance since the collapse of the Bitcoin exchange. He arrived at a heavily guarded Bahamas court. He might be returned to America by extradition.

According to a statement from his attorney, Mark S. Cohen, “Mr. Bankman-Fried is evaluating the charges with his legal team and contemplating all of his legal alternatives.”

Prosecutors claimed in the indictment that Bankman-Fried had concocted a scheme to defraud FTX’s clients by stealing their deposits and using them to cover costs and debts as well as to make investments on behalf of his cryptocurrency hedge fund, Alameda Research LLC.

Prosecutors claimed that he also tried to hide the money he had made through wire fraud and cheated Alameda’s lenders by giving them incorrect and misleading information about the state of the hedge fund.

In complaints filed on Tuesday, the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) both claimed that Bankman-Fried had engaged in fraud.

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