SEC charges Sam Bankman-Fried with defrauding investors — Transcript

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1. 0:00are next to the other major headlines
2. 0:01this Tuesday night Federal prosecutors
3. 0:03unsealing the indictment against the
4. 0:05former CEO of cryptocurrency exchange
5. 0:07giant FTX Sam bankman freed tonight he's
6. 0:10now jailed in the Bahamas fighting
7. 0:12extradition to the U.S and this evening
8. 0:13authorities say this has been a massive
9. 0:16years-long fraud billions lost will
10. 0:18customers investors get any of their
11. 0:20money back here's our chief business
12. 0:22correspondent Rebecca Jarvis tonight
13. 0:24tonight the founder of FTX one of the
14. 0:27largest cryptocurrency exchanges in the
15. 0:29world now charged in a scheme that
16. 0:31investigators say stole billions of
17. 0:34dollars from customers and investors
18. 0:36this is one of the biggest Financial
19. 0:38frauds in American history Sam bankman
20. 0:40freed fighting extradition from the
21. 0:43Bahamas as he faces SEC charges in eight
22. 0:46counts of criminal fraud including money
23. 0:48laundering and wire fraud the major
24. 0:51political donor also accused of
25. 0:53violating campaign Finance laws he used
26. 0:56that money for his personal benefit
27. 0:57including to make personal Investments
28. 1:00and to cover expenses and debts of his
29. 1:02hedge fund Alameda research but in an
30. 1:05interview with our George Stephanopoulos
31. 1:07just two weeks ago bakeman freed
32. 1:09repeatedly denied knowing FTX funds were
33. 1:12improperly being used for his hedge fund
34. 1:14Alameda research I don't know of FTX
35. 1:17deposits being used to pay off Alameda
36. 1:20creditors FTX customers alone were
37. 1:23defrauded over 8 billion dollars
38. 1:25according to Federal authorities are you
39. 1:28worried about going to jail there are a
40. 1:29lot of things that are
41. 1:31worrying me right now let whatever you
42. 1:34know Regulatory and legal processes are
43. 1:36happening play out as they will the 30
44. 1:38year old once celebrated as the poster
45. 1:41child for transparency in crypto his
46. 1:44company FTX valued at 32 billion dollars
47. 1:47earlier this year attracting amateur
48. 1:50investors and partnering with celebs
49. 1:52like Steph Curry and Tom Brady but
50. 1:55imploding nearly a month ago with FTX
51. 1:58filing for bankruptcy and bankman freed
52. 2:00stepping down as CEO and tonight the new
53. 2:03FTX CEO John Ray testifying on Capitol
54. 2:07Hill this is really old-fashioned and
55. 2:09embezzlement this is just taking money
56. 2:11from customers
57. 2:14and using it for your own purpose not
58. 2:16sophisticated at all a lot more to the
59. 2:19story to come Rebecca Jarvis joining us
60. 2:21in the meantime tonight one of the big
61. 2:22questions obviously Rebecca what are the
62. 2:24chances that any of the money will be uh
63. 2:27recouped by any of these customers any
64. 2:29of these investors and then where is the
65. 2:31suspect tonight
66. 2:33well David Sam bankman freed has just
67. 2:36been denied bail by a judge in the
68. 2:38Bahamas that judge calling him a Flight
69. 2:40Risk his lawyer Sam batemans Freed's
70. 2:43lawyer telling ABC News he's considering
71. 2:45all options as for those victims those
72. 2:48customers who lost billions of dollars
73. 2:50experts say it will take a long time if
74. 2:53ever before they get their money back
75. 2:55David Rebecca Jarvis tonight Rebecca
76. 2:57thank you hi everyone George
77. 3:00Stephanopoulos here thanks for checking
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