CFTC Follows SEC by Filing a Lawsuit Against Disgraced FTX Co-Founder Sam Bankman-Fried – Bitcoin News

Bitcoin.com

On Dec. 13, 2022, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against Sam Bankman-Fried (SBF), FTX Trading LTD., and Alameda Research. The CFTC alleges that FTX customer deposits, “throughout the relevant period,” including both fiat currencies and cryptocurrencies, were reportedly “appropriated by Alameda for its own use.”

U.S. Commodity Futures Trading Commission: ‘FTX and Alameda Comingled, Mishandled, and Misappropriated FTX Trading Customer Funds’ From Day One

The U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit (Case 1:22-cv-10503) against SBF and his companies FTX and Alameda Research. The lawsuit claims that “at Bankman-Fried’s direction, FTX executives created features in the underlying code for FTX that allowed Alameda to maintain an essentially unlimited line of credit on FTX.”

How To Get Free Crypto  

The CFTC lawsuit against Sam Bankman-Fried, the co-founder of FTX Trading Limited.

The CFTC alleges that SBF and his inner circle “took hundreds of millions of dollars” in loans from Alameda and used the funds for Bahamian real estate, “political donations, and for other unauthorized uses.”

The CFTC’s court filing insists:

Through this conduct and the conduct further described herein, [the] defendants violated Section 6(c)(1) of the Commodity Exchange Act.

The U.S. commodities regulator is seeking “civil monetary penalties and remedial ancillary relief.” Furthermore, like the recent SEC charges, the CFTC wants SBF banned from trading activities. The CFTC believes it has jurisdiction over SBF, as Bankman-Fried is a U.S. citizen who has resided in various locations worldwide. SBF and his companies have conducted business dealings in the U.S. as well for a “relevant period,” the CFTC court document declares. For instance, Alameda Research is a Delaware limited liability company registered in the United States.

“The FTX Enterprise failed to observe corporate formalities, including failure to segregate funds, operations, resources, and personnel, or to properly document intercompany transfers or funds and other resources,” the CFTC lawsuit alleges. “The entities regularly shared office space, systems, accounts, and communications channels. On information and belief, assets flowed freely between the FTX Enterprise entities, often without documentation or effective tracking,” the court document adds.

The U.S. CFTC court document further states:

FTX and Alameda comingled, mishandled, and misappropriated FTX Trading customer funds from the moment of FTX’s launch.

The recently published charges stemming from the U.S. Securities and Exchange Commission (SEC) on Dec. 13, also indicate that the SEC believes the FTX fraud began from day one. The SEC charges are similar to the CFTC’s lawsuit, as both complaints note that Alameda allegedly had an “unlimited” line of credit that derived from FTX and essentially customer funds. In addition to the CFTC, the Southern District of New York’s Attorney’s office indicted SBF with eight counts of financial crimes charges.

Coinbase Banner  
Tags in this story
Alameda Research, CFTC, Commodity Futures Trading Commission., Customer Funds, Fraud, FTX collapse, FTX Sam Bankman-Fried, FTX’s collapse, FTX’s launch, Lawsuit, Sam Bankman-Fried, sbf, SBF CFTC, SEC, SEC charges

What do you think about the CFTC’s lawsuit against FTX and Sam Bankman-Fried? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Go to Source
Author: Jamie Redman


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.