Sam Bankman-Fried charged by the US Securities and Exchange Commission

Founder of collapsed cryptocurrency exchange FTX Samuel Bankman-Fried was supposed to testify before Congress today, but he won’t be making it. He was arrested yesterday in the Bahamas, and is now in deep legal trouble, the Guardian’s Alex Hern reports:

Sam Bankman-Fried, the founder and former chief executive of the crypto exchange FTX, has been charged by the US Securities and Exchange Commission with defrauding investors in the company.

The SEC said: “The Securities and Exchange Commission today charged Samuel Bankman-Fried with orchestrating a scheme to defraud equity investors in FTX Trading Ltd, the crypto trading platform of which he was the CEO and co-founder. Investigations as to other securities law violations and into other entities and persons relating to the alleged misconduct are ongoing.”

The SEC said Bankman-Fried concealed his diversion of FTX customers’ funds to Alameda Research, FTX’s crypto hedge fund, while raising more than $1.8bn (£1.5bn) from investors, including about $1.1bn from about 90 US-based investors.