FILE - Changing Market Roles: The FTX Proposal and Trends in New Clearinghouse Models

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The former billionaire, Sam Bankman-Fried, has been charged by the SEC for defrauding cryptocurrency investors. CBS News has more:  

The U.S. Securities and Exchange Commission has charged the former CEO of failed cryptocurrency firm FTX with orchestrating a scheme to defraud investors. 

An SEC complaint filed Tuesday alleges that Sam Bankman-Fried raised more than $1.8 billion from equity investors since May 2019 by promoting FTX as a safe, responsible platform for trading crypto assets. 

The complaint says Bankman-Fried diverted customer funds to Alameda Research LLC, his privately held crypto fund, without telling them. The complaint also says Bankman-Fried commingled FTX customers’ funds at Alameda to make undisclosed venture investments, lavish real estate purchases and large political donations. 

“FTX operated behind a veneer of legitimacy Mr. Bankman-Fried created by, among other things, touting its best-in-class controls, including a proprietary ‘risk engine,’ and FTX’s adherence to specific investor protection principles and detailed terms of service,” Gurbir S. Grewal, director of the SEC’s Division of Enforcement, in a statement. “But as we allege in our complaint, that veneer wasn’t just thin, it was fraudulent.”  

Sam Brinton, Energy Official for the Biden administration, has been fired after alleged luggage theft. 

Also, President Biden comments on inflation in America. 

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