The US Securities and Exchange Commission (SEC) accused Sam Bankman-Fried, the founder of cryptocurrency trading platform FTX, of defrauding investors through the use of a “fragile system.”

Founded three years ago in the Bahamas, FTX filed for bankruptcy on November 11, following a liquidity crisis that began when traders tried to withdraw $6 billion worth of money from the stock market in just 72 hours.

It has since emerged that Bankman-Fried has secretly used $10 billion from clients to expand the company. Bankman-Fried was arrested yesterday in the Bahamas at the request of the US Attorney General’s office.

‘WE CANNOT EXPRESS OURSELVES BEFORE THE UNITED STATES CONGRESS’

The SEC announced that it has filed a subpoena to prevent Bankman-Fried from buying and selling securities other than its own assets.

The SEC statement said the attorney general of the southern New York legislature and the commission responsible for commodity futures markets will also file charges against Bankman-Fried today.

banker-fried This day United States on the bankruptcy of FTX He was expected to testify before Congress. but the Congress Bankman-Fried will not be able to testify before Congress after his arrest, according to member Maxine Waters.

“I never tried to commit fraud,” Bankman-Fried said in an interview with the New York Times Dealbook Summit on November 30. (Reuters)