According to Bloomberg sources, the Securities and Exchange Commission (SEC) has launched an investigation into Sam Bankman-Fried. The investigation concerns possible violations of securities legislation.
Recall that the US platform FTX US and the trading house Bankman-Fried Alameda Research are already under investigation by the SEC. The Ministry of Justice is also studying the situation with the cryptocurrency exchange.
Now the SEC is very carefully examining whether Sam Bankman-Fried is involved in what happened with FTX.com , personally. In turn, the securities regulator of the Bahamas, where it is based FTX.com , announced that he would freeze the company's assets and appoint an interim manager.
What Sam Bankman-Fried says about the FTX situation while the SEC is investigating
There are too many rumors and unverified information around this whole situation. Sam Bankman-Fried tried to bring some clarity to this and published a series of tweets. Sam Bankman-Fried said that he could not disclose all the details of the deal while negotiations were underway with Binance. He could not disclose all the details of a possible deal, but ultimately does not absolve himself of responsibility.
Meanwhile, some former FTX employees, on condition of anonymity, tell reporters about how everything happened in the company's management system. According to one of them, everything was run by a real gang in the Bahamas. Among this so-called gang is Alameda CEO Caroline Ellison, who allegedly previously met with Sam Bankman-Freed.
Former FTX employees claim that the company's management center was nothing more than a place of conflicts of interest, nepotism, and a complete lack of supervision.
FTX and Alameda employees say they were kept in the dark about the events of last week, adding that only the inner circle of CEO Bankman-Fried could have known that the exchange, as reported by the Wall Street Journal, siphoned off customer funds in Alameda.
Will Sam Bankman-Fried be punished following the SEC investigation
If it is confirmed that the investigation is really underway, this does not mean that the SEC can bring the case to court and then put the head of FTX in the dock. If, after all, the fault of the head of FTX is proved, he faces multimillion-dollar fines, and possibly a prison term. The situation is far from a denouement, so it remains to monitor what will happen next.