-
Sam Bankman-Fried, the founder and former chief executive of the collapsed cryptocurrency exchange FTX, has been charged with fraud, conspiracy to commit money laundering, and conspiracy to defraud the U.S. and violate campaign finance laws. On Monday, police in the Bahamas arrested Bankman-Fried after receiving formal notification from the U.S. of criminal charges against him.
-
A representative from the Commodity Futures Trading Commission (CFTC) says the agency has ascertained $8bn (£6bn) in customer losses as of today as a result of the FTX collapse. They allege that the fraudulent use of customer funds was inconsistent with both FTX's terms of service and with public statements made by Sam Bankman-Fried.
-
The unsealed indictment also accuses Bankman-Fried of violating political contribution laws by donating to candidates and committees in New York under another person's name. Bankman-Fried made "tens of millions of dollars" in contributions to both Democrats and Republicans in order to sway public policy, Williams said.
Why it matters
John Ray III, who stepped in as FTX CEO after Bankman-Fried's resignation on Nov. 11 after a long career that included overseeing the Enron bankruptcy, said in a House hearing on Tuesday that about $7 billion was lost in the collapse. Ray alleged that Bankman-Fried and others at FTX misused customer funds, contributing to the losses.
