Damian Williams, United States Attorney for the Southern District of New York, said the investigation leading to charges against former FTX CEO Sam Bankman-Fried had been “very, very fast” but prosecutors were “not done” with arrests.
In a press conference livestreamed on Dec. 13, Williams said the timing of the arrest of Bankman-Fried had been based on progress from law enforcement officials. They authorized charges on Dec. 7 and indicted the former FTX CEO on Dec. 9, leading to a warrant being executed in the Bahamas on Dec. 12. An eight-count indictment released on Dec. 13 alleges that SBF defrauded FTX’s customers and investors as well as lenders at Alameda, and violated campaign finance laws with contributions to both Democratic and Republican lawmakers.
“Bankman-Fried knowingly defrauded customers of FTX through the misappropriation of customer deposits to pay expenses and debts of a different company,” FBI assistant director in charge Michael Driscoll said at the same press conference. “In addition, Bankman-Fried executed deliberate transactions designed to obscure and disguise the misuse of customer funds. He preyed on his customers, the victims of this case, abusing the trust placed not only in his company but in himself as the lead of that company.”
There will be a press conference today at 2 p.m. to announce the indictment of Samuel Bankman-Fried, founder of the now-bankrupt FTX cryptocurrency exchange. The press conference will be live streamed at https://t.co/n1wN6uglOD pic.twitter.com/w3WetP45E6
— US Attorney SDNY (@SDNYnews) December 13, 2022
Williams said the investigation in the collapse of FTX was ongoing, hinting at additional announcements on potential arrests in the future. He called on individuals who may have been involved in alleged illegal actions at FTX and Alameda to “come see us before we come see you.”
“You can commit fraud in shorts and T-shirts in the sun,” said Williams in response to a reporter’s question about whether SBF fit the profile of a fraudster. “We are not done. Extradition is ongoing in the Bahamas.”
Williams added:
“This was one of the biggest financial frauds in American history.”
Related: SBF’s lawyers request bail in Bahamas Magistrate Court pending extradition
Complaints from both the U.S. Securities and Exchange Commission and Commodity Futures Trading Commissions on Dec. 13 followed Bankman-Fried’s indictment. The former FTX CEO had been expected to testify before a hearing of the House Financial Committee that same day. U.S. lawmakers with the Senate Banking Committee will also explore the collapse of FTX at a Dec. 14 hearing.
