FTX Founder SBF Engaged In Fraud For Years, Prosecutors Say.
Just a day after former FTX CEO Sam Bankman-Fried was arrested by Bahamian authorities, prosecutors are already providing insight into the charges made against him and what punishment Bankman-Fried could be looking at.
Years Long Fraud
Earlier today, Sam Bankman-Fried (SBF)’s indictment was unveiled by the attorney’s office, revealing that SBF was being charged for eight counts, which if he was convicted for all of them would cause the former CEO to face up to 115 years in prison.
The 13-page criminal indictment shows that charges that were made against him include wire fraud, wire fraud conspiracy and conspiracy to commit money laundering.
United States Attorney for the Southern District of New York Damian Williams claims that for many years now, he has repeatedly lied to customers, investors and lenders about the structure of his business and the funds they entrusted into his exchange.
“It’s fair to say that […] this is one of the biggest financial frauds in American history,” Williams said.
Damian Williams also says that FTX had been misappropriating their customers’ funds since as early as 2019. “FTX operated behind a veneer of legitimacy. That veneer wasn’t just thin, it was illegitimate.” SEC Director of Enforcement Gurbir Grewal said.
The Timing Of SBF’s Arrest
Many in the crypto community, along with members of Congress themselves have pointed out the seemingly questionable timing of SBF’s arrest, which happened just before the former CEO was due to testify before the House Financial Services Committee on December 13th.
“The public has been waiting eagerly to get these answers under oath before Congress, and the timing of this arrest denies the public this opportunity,” Committee Chair Maxine Waters pointed out.
In response to this, U.S. Attorney Williams explains that the timing “was dictated by law enforcement, rather than any other considerations, including the timing of his testimony in Congress.” He further explains that they had already authorized charges against SBF on Wednesday and indicted him on Friday.
— CSPAN (@cspan) December 13, 2022