New York
CNN
—
FTX founder Sam Bankman-Fried was indicted on eight criminal charges including wire fraud and conspiracy by misusing customer funds, according to an indictment from the US Attorney of the Southern District of New York.
The 30-year-old Bankman-Fried was arrested at his home in the Bahamas on Monday and appeared in court in Nassau Tuesday. He could face up to 115 years in prison if convicted on all eight counts, according to congressional statutory maximum sentencing guidelines. He did not waive his right to an extradition hearing, according to a US official. But Chief Magistrate of the Commonwealth of The Bahamas Joyann Ferguson-Pratt has denied Bankman-Fried bail.
Separately Tuesday, US markets regulators charged Bankman-Fried with defrauding investors and customers in his failed crypto exchange FTX.
The Securities and Exchange Commission said Bankman-Fried, “orchestrated a years-long fraud” to conceal from FTX investors the diversion of customer funds to Alameda Research, his crypto-trading hedge fund.
“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.
The Commodity Futures Trading Commission also charged Bankman-Fried in a parallel action with the SEC.
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