FTX founder Sam Bankman-Fried has arrived in the US to face charges.
The 30-year-old disgraced cryptocurrency mogul landed back in home country to face accusations of carrying out “one of the biggest financial frauds in US history,” according to federal prosecutors.
The claims against him include his FTX investments to support his other business ventures and donating “tens of millions” of dodgy money to both the Democratic and Republican parties.
Sam - who has been living in the Bahamas - denies all allegations and could appear in court later on Thursday (22.12.22) after two of his former colleagues plead guilty to charges brought in connection to the failed fund that has left 50 of its biggest investors more than $3.1 billion worse off in total.
Gary Wang and Caroline Ellison - who with Sam jointly form Alameda Research - were both indicted for "roles in the frauds that contributed to FTX's collapse", according to Damian William, a attorney working for the Southern District of New York.
According to the statement, which was delivered via video, the duo were collaborating with him and the rest of his team.
Damian also revealed that Sam is “in FBI custody” as he travels back to the US.
He said: "Samuel Bankman-Fried is now in FBI custody and is on his way back to the United States. He will be transported directly to the Southern District of New York and he will appear in court before a judge in this district as soon as possible."
"If you participated in misconduct at FTX or Alameda, now is the time to get ahead of it. We are moving quickly and our patience is not eternal."
Last week, Sam was given fresh allegations of "orchestrating a scheme to defraud equity investors in FTX". the Securities and Exchange Commission said that he, the man dubbed ‘the King of Crypto’, had formed a “house of cards on a foundation of deception.”
Sanjay Wadhwa, the SEC’s deputy director said: "As alleged, Mr. Bankman-Fried, Ms. Ellison, and Mr. Wang were active participants in a scheme to conceal material information from FTX investors, including through the efforts of Mr. Bankman-Fried and Ms. Ellison to artificially prop up the value of FTX, which served as collateral for undisclosed loans that Alameda took out from FTX pursuant to its undisclosed, and virtually unlimited, line of credit."
"By surreptitiously siphoning FTX's customer funds onto the books of Alameda, defendants hid the very real risks that FTX's investors and customers faced."
The fund has filed for bankruptcy, making it impossible for investors to withdraw their funds.
