SEC Says Bankman-Fried Defrauded Investors of $1.8 Billion (1)

FTX co-founder Sam Bankman-Fried was accused by US regulators of carrying out a multi-year scheme to defraud investors.

The Securities and Exchange Commission said on Tuesday that Bankman-Fried, who was arrested on Monday in the Bahamas and is facing criminal charges in the US, raised more than $1.8 billion from investors. The SEC also said he concealed risks and FTX’s relationship with his trading firm Alameda Research, and used commingled customer funds.

“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 ...