CFTC unveils new charges against Sam Bankman-Fried, FTX, and Alameda
In Brief
The Commodity Futures Trading Commission (CFTC) has released a new lawsuit against Sam Bankman-Fried, alleging that FTX misused customer funds and SBF violated the Commodities Exchange Act.
After an arrest by Bahamian authorities on December 12, SBF was denied bail on December 13.
The Commodity Futures Trading Commission has filed a lawsuit against Sam Bankman-Fried for violating the Commodities Exchange Act and misusing customer funds.
The charges come after the Securities and Exchange Commission charged SBF with defrauding investors in the crypto exchange FTX. Bankman-Fried has been charged with wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy, and money laundering.
CFTC’s charges echo the lawsuit by the SEC unveiled earlier today, which alleged that SBF orchestrated “a scheme to defraud equity investors in FTX Trading Ltd.” According to the press release, Bankman-Fried ran his business as a fraud from the start.
The CFTC filing also alleges that Bankman-Fried’s hedge fund, Alameda Research, accessed $8 billion in customer funds. Enabled by FTX, Alameda accessed massive amounts of liquidity and had no trading limitations.
Bankman-Fried, Alameda, and FTX used customer funds for their own interests, which included “luxury real estate purchases, political contributions, and high-risk, illiquid digital asset industry investments.”
“FTX employees created features in the FTX code that favored Alameda and allowed it to execute transactions even when it did not have sufficient funds available, including an “allow negative flag” and effectively limitless line of credit that allowed Alameda to withdraw billions of dollars in customer assets from FTX,” the complaint alleged.
Sam Bankman-Fried was arrested by Bahamian authorities on Monday, December 12. The most recent sources state that SBF was denied bail and will be remanded into custody. If convicted on all counts, Bankman-Fried could get a maximum sentence of 115 years in prison, prosecutors said.
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About The Author
Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on agnec@mpost.io.
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Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on agnec@mpost.io.
