An avalanche of charges has hit FTX founder Sam Bankman-Fried shortly after he was arrested by police in the Bahamas.
The US Department of Justice (DOJ) has filed eight charges against FTX founder Sam Bankman-Fried, according to a release, including fraud, money laundering and violation of campaign finance laws,
«One month ago, FTX collapsed, causing billions of dollars in losses to its customers, lenders, and investors,» said US Attorney Damian Williams. «As today’s charges make clear, this was not a case of mismanagement or poor oversight, but of intentional fraud, plain and simple.»
If convicted on all eight counts, Bankman-Fried could face a maximum sentence of 115 years in prison.
SEC, CFTC
In addition, financial regulators in the US also made moves shortly after the DOJ, including the Securities and Exchange Commission and the Commodity Futures Trading Commission which both charged Bankman-Fried with fraud.
«We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto,» said SEC chair Gary Gensler.
Meanwhile, Bankman-Fried was denied bail by a magistrate judge in the Bahamas, citing heightened flight risk, and has been ordered to be held in custody until an extradition hearing scheduled for February 2023.
