In Manhattan federal court, a new superseding indictment against Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX, was unsealed on Thursday, February 23. The indictment contains 12 charges, including eight counts of fraud, money laundering, and other charges related to the collapse of the now-bankrupt exchange.
Bankman-Fried was previously charged with eight counts of fraud, money laundering, and other charges over the collapse of the exchange. He has pleaded not guilty to those charges.
FTX’s Sam Bankman-Fried “Exploited” the Trust of Investors
According to the new indictment, Bankman-Fried exploited the trust that FTX customers placed in him and his exchange by stealing FTX customer deposits and using billions of dollars in stolen funds for various purposes. Prosecutors allege that Bankman-Fried used the stolen customer funds to plug losses at Alameda Research, his hedge fund.
In addition, two former executives of Alameda and FTX have already pleaded guilty to fraud charges and agreed to cooperate with the investigation. Caroline Ellison, Alameda’s former chief executive, and Gary Wang, a former FTX executive, have both entered guilty pleas.
Bankman-Fried is a prominent figure in the cryptocurrency industry and has been a vocal advocate for regulatory compliance. The charges against him highlight the potential for illegal activities in the cryptocurrency industry and the importance of transparency and accountability.
The case is ongoing, and Bankman-Fried is presumed innocent until proven guilty in a court of law. FTX has not yet released a statement on the matter.
This breaking news will likely significantly impact the cryptocurrency industry and the broader financial world. The charges against Bankman-Fried highlight the need for regulatory compliance and transparency in the industry and underscore the risks associated with investing in cryptocurrencies. Further updates will be provided as they become available.
Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.
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