CFTC files lawsuit against Sam Bankman-Fried, FTX, and Alameda for fraud

Share This Post

According to the federal regulator, SBF and FTX companies “used FTX customer funds for a variety of personal expenditures” including real estate and private jets.

The United States Commodity Futures Trading Commission, or CFTC, has filed a lawsuit against Sam Bankman-Fried, FTX and Alameda Research, claiming violations of the Commodity Exchange Act and demanding a jury trial.

According to court records filed Dec. 13 in the Southern District of New York, the CFTC filed a complaint for injunctive and other equitable relief as well as civil monetary penalties against Bankman-Fried, FTX Trading, and Alameda Research. The complaint alleged that SBF personally directed FTC executives to set up features allowing Alameda to use the crypto exchange as a line of credit for its lenders.

“Contrary to [Bankman-Fried’s] representations and without disclosure to FTX customers, Alameda and FTX comingled funds and freely used FTX customer funds as if they were their own, including as capital to deploy in their own trading and investment activities,” said the CFTC. “On information and belief, Bankman-Fried, his parents, and other FTX and Alameda employees used FTX customer funds for a variety of personal expenditures, including luxury real estate purchases, private jets, documented and undocumented personal loans, and personal political donations.”

Authorities in the Bahamas arrested Bankman-Fried on Dec. 12 following criminal charges being filed in the United States — the two countries have an extradition agreement. The U.S. Securities and Exchange Commission also filed charges against SBF on Dec. 13, alleging violations of the anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.

Related: Bahamas reportedly asked SBF to mint new coin after FTX collapse

Prior to his arrest, Bankman-Fried was scheduled to testify before the House Financial Services Committee on Dec. 13 on the collapse of FTX. Leaked written testimony from the former CEO had him largely blaming others for the exchange’s downfall.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Dogecoin Price Rally Gains Momentum, Will DOGE Smash Through $0.18?

The Dogecoin price momentum is heating up as it makes another move toward the key $018 mark, a level that previously set an all-time high for the popular meme coin The recent surge in the Dogecoin

VanEck Launches VanEck Pyth ETN On Pyth Network

The post VanEck Launches VanEck Pyth ETN On Pyth Network appeared first on Coinpedia Fintech News According to a recent press release, VanEck has launched the VanEck Pyth Exchange Traded Note (ETN)

Coinbase Donated $75M This Election Cycle

The post Coinbase Donated $75M This Election Cycle appeared first on Coinpedia Fintech News Brian Armstrong shared in a tweet that with the US election results in 6 days, no matter how you slice it,

Mike Novogratz Makes Bitcoin Predictions Post US Elections, Sees A Promising Future For BTC

The post Mike Novogratz Makes Bitcoin Predictions Post US Elections, Sees A Promising Future For BTC appeared first on Coinpedia Fintech News In a recent interview on the Unchained YouTube channel,

Coinshares Notes Potential Risks In MicroStrategy’s Bold $42B Bitcoin Acquisition Plan

The post Coinshares Notes Potential Risks In MicroStrategy’s Bold $42B Bitcoin Acquisition Plan appeared first on Coinpedia Fintech News In a research blog on Monday, Coinshares revealed that

Bitcoin primed for post-election rally despite US investor caution – CryptoQuant

Bitcoin’s current valuation aligns closely with its price levels before the past two US elections, suggesting that the crypto could be primed for growth if a favorable post-election catalyst