A day after former FTX CEO Sam Bankman-Fried Arrested in the Bahamas, U.S. Attorney for the Southern District of New York Damian Williams provided some insight into his allegations.
“It’s fair to say […] This is one of the largest financial frauds in American history,” Williams said.
Williams added: there is a possibility of prosecution against Bankman-Fried quickly through the coordination of several government agencies.
“Every day of the past month The office’s dedicated prosecutors and our partners from the FBI, SEC and CFTC have been working around the clock to figure out what happened. and initiate justice,” Williams said.
Williams said FTX embezzled funds as far back as 2019. He also claimed FTX lied to investors during this year’s bear market about the state of his business and risk management practices.
SEC Director Gurbir Grewal said the claims about customer protection were “misleading” and accused Bankman-Fried offers Alameda Research unlimited loans generated from client funds.
Previously, Bankman-Fried is scheduled to answer questions about his company’s collapse before the House Financial Services Committee today. by members of Congress That includes House of Representatives Financial Services Committee Chair Maxine Waters, who has questioned the timing of the arrest. Bankman-Fried
“The people are eagerly awaiting these answers under oath before Parliament. And the timing of this arrest has closed this opportunity to the public,” Waters said in a statement.
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