US charges Sam Bankman-Fried with defrauding investors

The US Securities and Exchange Commission (SEC) has charged Sam Bankman-Fried with “orchestrating a scheme to defraud investors” in the failed cryptocurrency exchange FTX.

The former FTX boss was arrested on Monday.

Mr Bankman-Fried built a “house of cards on a foundation of deception”, SEC Chair Gary Gensler said.

He added that the charges for alleged fraud were a warning for other platforms to comply with US laws.

Speaking to BBC News earlier this month, Mr Bankman-Fried sought to distance himself from accusations of illegal activity.

“I didn’t knowingly commit fraud. I don’t think I committed fraud. I didn’t want any of this to happen. I was certainly not nearly as competent as I thought I was,” he told BBC News cyber reporter Joe Tidy.

Mr Bankman-Fried also denied allegations he must have been aware that FTX’s affiliated trading company, Alameda Research, was using FTX customer funds.

He was once viewed as a young version of legendary US investor Warren Buffett. As recently as…

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This article was written by and originally published on www.bbc.co.uk