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

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

According to tribunal records filed Dec. 13 successful the Southern District of New York, the CFTC filed a ailment for injunctive and different equitable alleviation arsenic good arsenic civilian monetary penalties against Bankman-Fried, FTX Trading, and Alameda Research. The ailment alleged that SBF personally directed FTC executives to acceptable up features allowing Alameda to usage the crypto speech arsenic a enactment of recognition for its lenders.

“Contrary to [Bankman-Fried’s] representations and without disclosure to FTX customers, Alameda and FTX comingled funds and freely utilized FTX lawsuit funds arsenic if they were their own, including arsenic superior to deploy successful their ain trading and concern activities,” said the CFTC. “On accusation and belief, Bankman-Fried, his parents, and different FTX and Alameda employees utilized FTX lawsuit funds for a assortment of idiosyncratic expenditures, including luxury existent property purchases, backstage jets, documented and undocumented idiosyncratic loans, and idiosyncratic governmental donations.”

Authorities successful the Bahamas arrested Bankman-Fried connected Dec. 12 pursuing transgression charges being filed successful the United States — the 2 countries person an extradition agreement. The U.S. Securities and Exchange Commission besides filed charges against SBF connected 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 caller coin aft FTX collapse

Prior to his arrest, Bankman-Fried was scheduled to attest earlier the House Financial Services Committee connected Dec. 13 connected the illness of FTX. Leaked written grounds from the erstwhile CEO had him largely blaming others for the exchange’s downfall.