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The SEC announces it has authorized charges against FTX founder Sam Bankman-Fried hours after his arrest in the Bahamas


sam bankman-friedSam Bankman-Fried testifies during a hearing before the House Financial Services Committee on December 8, 2021 in Washington, DC.

Alex Wong/Getty Images

  • The SEC has authorized charges against FTX founder Sam Bankman-Fried, the regulator said on Monday.
  • The announcement came shortly after the Bahamian authorities arrested Bankman-Fried.
  • Bankman-Fried resigned as FTX’s CEO on November 11, the same day the exchange filed for Chapter 11 bankruptcy.

The US Securities and Exchange Commission said it will file charges against FTX founder Sam Bankman-Fried on Tuesday relating to violations of securities law.

The SEC made the announcement on Monday, shortly after Bahamian authorities arrest Bankman-Fried, the US Attorney’s Office Southern District of New York confirmed.

“We commend our law enforcement partners for securing the arrest of Sam Bankman-Fried on federal criminal charges,” Gurbir Grewal, the enforcement director for the SEC, wrote in a statement posted to Twitter. 

—U.S. Securities and Exchange Commission (@SECGov) December 13, 2022

Bankman-Fried resigned as the CEO of FTX on November 11, the same day the exchange filed for Chapter 11 bankruptcy, as it failed to secure a rescue following an intense week-long liquidity squeeze. 

The SEC did not immediately respond to Insider’s request for comment sent outside regular business hours.

This is a developing story. Check back for updates.

Read the original article on Business Insider