Sam Bankman-Fried, the CEO of cryptocurrency exchange FTX, has been charged by the US Securities and Exchange Commission (SEC) for operating an unregistered securities exchange.
The SEC alleges that FTX, which is based in the Cayman Islands, offered trading in security-based swaps without registering with the agency as a national securities exchange. The agency also claims that FTX failed to implement adequate measures to prevent market manipulation and insider trading.
Bankman-Fried has responded to the charges, stating that FTX has always operated within the bounds of the law and that the company will fully cooperate with the SEC during the investigation.
The charges against FTX and Bankman-Fried come amid increased scrutiny of the cryptocurrency industry by US regulators. In recent months, the SEC has taken action against several companies and individuals involved in the sector, including Ripple and its CEO Brad Garlinghouse.
The case against FTX and Bankman-Fried is a reminder that, despite the growing popularity of cryptocurrency, it is still subject to the same regulations and oversight as traditional financial markets. Companies operating in the space must ensure that they comply with all relevant laws and regulations in order to avoid legal action from regulatory agencies.
