In a public report released earlier today, on the 13th of December 2022, the United States Securities and Exchange Commission (SEC) announced that the fall of the famous crypto exchange was, after all, a carefully orchestrated fraud scheme by Sam Bankman-Fried. As it is, the SEC stated that he has been charged with violating the anti-fraud provisions of the Securities Exchange Act of 1934 and the Securities Act of 1933. Other independent investigations are still ongoing.
Bankman-Fried Is A Very Calculated Fraud – SEC
Contrary to the narrative that has been consistently peddled by Sam Bankman-Fried, the US Securities and Exchange Commission (SEC) has released a report charging the former CEO of intentionally setting out to defraud his investors.
The charges filed showed that quite the opposite of what he has continued to maintain as his position, Bankman-Fried in fact mismanaged the funds of his FTX investors to the head of his trading firm, Alameda Research, above water.
Bearing in mind that the two firms were supposed to be distinct corporate entities, Bankman-Fried had been accused of false representation and intentionally leading his investors to believe that all was well.
According to the documents filed, Sam Bankman-Fried was clearly living above his means while using his FTX investors’ funds to finance his life and make his numerous “donations.”
From this new development, it is clear that Bankman-Fried, who has just been arrested in the Bahamas and will probably be extradited as soon as the authorities request it, had better get ready for a legal battle.
Is The Long Arm Of The Law Finally Catching Up On Bankman-Fried?
Since Sam Bankman-Fried, who is the co-founder and former chief executive officer of the failed crypto exchange, filed for bankruptcy, several spectators and members of the community have continued to clamour for at least an arrest to be made.
Especially when he already point-blank declined the invitation of Rep Maxine Waters to testify at the hearing of the US House Committee on Financial Service, many people began to peddle the conspiracy theory that Bankman-Fried has everyone in his pockets.
While this new development and the news of Bankman Fried being arrested in the Bahamas may still seem insignificant, there is no doubt that hope, no matter how minute, has been restored in the hearts of investors. They would wonder: maybe Bankman-Fried is not above the law after all? The answer to which only time will correctly provide.
Editorial credit: Sergei Elagin/shutterstock.com
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