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Federal prosecutors have charged disgraced founder with eight criminal counts after his arrest in the Bahamas on Monday.

In addition, the filed charges against Bankman-Fried for 鈥渙rchestrating a scheme to defraud equity investors.鈥�

Meanwhile, the filed against Bankman-Fried, FTX and his hedge fund for fraud and material misrepresentations in connection with the sale of digital commodities in interstate commerce.

“We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto,” said SEC Chair in a .

The federal indictment 鈥� unsealed Tuesday 鈥� charges Bankman-Fried with widespread fraud as he built his FTX empire. He faces charges of conspiracy to commit wire fraud and securities fraud, individual charges of securities fraud and wire fraud, money laundering and conspiracy to avoid campaign finance regulations, per several media reports.

Bankman-Fried was in a Bahamas courtroom Tuesday, where he refused to waive his right to an extradition hearing 鈥� indicating he may fight being sent to the United States, .

FTX鈥檚 story

The charges all stem from the sudden 鈥� and complete 鈥� collapse of Bankman-Fried鈥檚 FTX crypto exchange and related companies.

In early November, the exchange saw a run of withdrawals after prices on FTX鈥檚 own token dropped like a rock. Despite being the fourth largest crypto exchange at the time, the FTX empire was thrown into bankruptcy 鈥� with allegations Bankman-Fried used customer deposits on the exchange to invest with his Alameda Research hedge fund platform.

The collapse is truly dramatic when one considers just earlier in the year FTX and had a $32 billion valuation and $8 billion valuation, respectively, before everything fell apart.

Investors in FTX included big names like聽 , , , , , , , 2 and .

The fall has set off an FTX-induced contagion in the industry. Just this month, crypto exchanges , and all announced they would be laying off 30% or more of their staff. In a letter to employees, Swyftx鈥檚 CEO cited the possibility of more 鈥渂lack swan-type events” and trading volumes likely falling in the first half of 2023 as reasons for the cuts, .

Further reading:

• FTX Collapse Will Reverberate Throughout The VC World For A Long Time
• Mergers & Money: FTX-Induced Crypto Contagion Likely Only Starting
• BlockFi Files For Bankruptcy As FTX Contagion Spreads
• Circle Nixes $9B SPAC Deal With Crypto Market In Tumult
• Crypto Exchange Kraken Cuts Workforce; U.S. Pushing More Industry Regulation
• How VCs Invest In Crypto Will Be Changed By FTX鈥檚 Spectacular Fall

滨濒濒耻蝉迟谤补迟颈辞苍:听Dom Guzman