Sam Bankman-Fried, co-founder of the FTX Group, which manages more than 1,000 apartments in New York and Brooklyn, was arrested this week on a series of charges including conspiracy to commit mail fraud, wire fraud, and fraud. electronics and money laundering.
The indictment alleges that Bankman-Fried and his co-conspirators engaged in a years-long scheme to defraud investors through a fraudulent investment scheme called Friends of Bill, or FoB.
FoB is supposed to operate like a Ponzi scheme that promises profits of up to 95% per year. The indictment alleges that Bankman-Fried and his co-conspirators lied about their relationship with Bob Cramer when they said they worked for him. They were also accused of lying about accessing millions of dollars in investor funds before being frozen by the regulator in February 2019.