On Monday night, former CEO of crypto-exchange FTX was charged by the SEC, FBI, and FCC for a 'ponzi-like' billion+ dollar fraud. The 8 chargers were announced on Tuesday morning. Sam Bankmen-fried (SBF) was arrested at his house in the Bahamas and is awaiting formal extradition to the United State.
This is a story of a greedy person who took advantage of a softly regulated crypto space. Sam Bankmen-fried (SBF) took investments in FTX and funneled them to its sister company, Alameda Research. Once the funds were held in Alameda Research, SBF would misappropriate the funds for things like real estate, personal expenses, and investments into his own cryptocurrency. This is a fraud on the level not seen since Bernie Madoff.
Sam Bankmen-fried (SBF) knowingly misappropriated money from investors and enjoyed a life of glitz and glamour as a result. SBF has been on a media tour presenting himself as a 'crypto-bro' that isn't skilled at accounting. Most notably, SBF was a mega donor to the Democrats and due to his arrest will be unable to testify to Congress....how convenient.