GREENVILLE, N.C. (WITN) – The former CEO of cryptocurrency giant FTX was arrested Monday in The Bahamas on several charges.
Sam Bankman-Fried faces conspiracy and fraud charges as the company he founded continues to unravel.
The SEC says Bankman-Fried transferred billions of dollars in customer funds from FTX to his hedgefund Alameda Research and then used the money for “fraudulent purposes, including real estate and big political donations.”
Bankman-Fried stepped down as CEO on Nov. 11th, the same day that the company filed for chapter 11 bankruptcy.
WITN spoke with Nathan Goldman, an NC State associate professor of accounting, who says what the disgraced CEO did highlights the dangers of cryptocurrency.
“Cryptocurrency is still an unregulated market, and it demands greater oversight and regulation. Specifically, there needs to be greater transparency and accounting regulation so that investors can be better aware of what the companies are doing, customers can have more insights as to the risk of using these companies for their needs, and the companies can have better insights into the risks that they face,” Goldman said.
The cryptocurrency market has taken a hit since the downfall of FTX.