The SEC Accuses Sam Bankman-Fried of “Orchestrating a Massive, Years-Long Fraud”

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“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,” SEC chair Gary Gensler said in a statement.

In November, Bankman-Fried continued to mislead investors because he needed money “to plug a multi-billion-dollar hole,” the SEC claimed in the complaint.

The commission accused Bankman-Fried of violating sections of the Securities Act of 1933 and the Securities Exchange Act of 1934, per the complaint.

FTX, which Bankman-Fried cofounded, and its affiliates collapsed in mid-November.

Bankman-Fried was arrested in the Bahamas on Monday based on a “sealed indictment” from US authorities, the US Attorney’s Office Southern District of New York announced on social media.

Authorities are “likely” to request extradition of Bankman-Fried, the Bahamas attorney general, Sen. Ryan Pinder KC, said in a statement.