U.S. Attorney for the Southern District of New York Damian Williams expressed harsh words against those potentially involved in the fraudulent activities of FTX and Alameda firms on Dec. 13, suggesting that further arrests will be made, and warned that individuals might commit fraud even wearing shorts and T-shirts while soaking up in the sun.
Speaking at a press conference, Williams said this was one of the biggest financial frauds in American history, and called it an abuse of trust through the misappropriation of customer funds and deliberate transactions to confuse the misuse of customer deposits. The indictment included charges of defrauding customers and investors at FTX, defrauding lenders at Alameda, as well as campaign finance violations to both Democratic and Republican lawmakers.
Michael Driscoll, FBI assistant director in charge added that Bankman-Fried knowingly violated laws and “preyed on his customers”.
The investigation is still ongoing, and those involved are encouraged to face authorities before it is too late. Meanwhile, witnesses have been requested to testify before the House Financial Committee and Senate Banking Committee on Dec. 13 and 14, respectively.
Charges have been authorized by law enforcement officials, and indictments have already been pressed against Bankman-Fried, with extradition being sought from the Bahamas. The U.S. Securities and Exchange Commission and Commodity Futures Trading Commissions have followed with their own complaints.
It is clear that the federal government will not tolerate such illegal activities, taking a hard stance against fraudsters regardless of the circumstances.
