SEC accuses Sam Bankman-Fried of FTX fraud
Sam Bankman-Fried (SBF) has been charged by the US Securities and Exchange Commission (SEC) with defrauding FTX investors and using funds from clients of the trading platform.
The agency said Bankman-Fried orchestrated a multi-year scam to hide FTX investors from diverting client funds to Alameda Research and providing the exchange's last unlimited "line of credit".
Despite claims by the former head of FTX that he was "not good with numbers," the SEC alleges that he controlled investment and operating activities, communicated frequently with Alameda employees, and had full access to internal records and data.
