America Commodity Futures Buying and selling Fee, or CFTC, has filed a lawsuit in opposition to Sam Bankman-Fried, FTX and Alameda Analysis, claiming violations of the Commodity Alternate Act and demanding a jury trial.
Based on court docket information filed Dec. 13 within the Southern District of New York, the CFTC filed a criticism for injunctive and different equitable reduction in addition to civil financial penalties in opposition to Bankman-Fried, FTX Buying and selling, and Alameda Analysis. The criticism alleged that SBF personally directed FTC executives to arrange options permitting Alameda to make use of the crypto alternate as a line of credit score for its lenders.
“Opposite to [Bankman-Fried’s] representations and with out disclosure to FTX prospects, Alameda and FTX comingled funds and freely used FTX buyer funds as in the event that they had been their very own, together with as capital to deploy in their very own buying and selling and funding actions,” mentioned the CFTC. “On info and perception, Bankman-Fried, his dad and mom, and different FTX and Alameda workers used FTX buyer funds for a wide range of private expenditures, together with luxurious actual property purchases, personal jets, documented and undocumented private loans, and private political donations.”
Authorities within the Bahamas arrested Bankman-Fried on Dec. 12 following legal expenses being filed in the USA — the 2 nations have an extradition settlement. The U.S. Securities and Alternate Fee additionally filed expenses in opposition to SBF on Dec. 13, alleging violations of the anti-fraud provisions of the Securities Act of 1933 and the Securities Alternate Act of 1934.
Associated: Bahamas reportedly requested SBF to mint new coin after FTX collapse
Previous to his arrest, Bankman-Fried was scheduled to testify earlier than the Home Monetary Providers Committee on Dec. 13 on the collapse of FTX. Leaked written testimony from the previous CEO had him largely blaming others for the alternate’s downfall.