Here Are All The Current Pending Lawsuits Against SBF
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December 13, 2022 10:11 am
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Sam Bankman-Fried’s troubles continue to grow…
Following his formal charging by U.S. authorities and his subsequent arrest in the Bahamas, the former C.E.O. of the collapsed FTX exchange now faces litigation on multiple fronts.
The Securities and Exchange Commission, the United States District Court for the Southern District of New York, and most recently, the Commodities and Futures Trading Commission are all suing SBF.
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All of the pending litigation relates to the defrauding of investors through the misappropriation of funds and the misrepresentation of trading and investment activities.
FTX is alleged to have been engaged in wash trading, a practice in which entities owned by the same person or persons trade assets back and forth between the entities in an attempt to alter the market price.
As such, regulators take issue with the massive amount of FTX-issued tokens that Alameda was holding.
Both the exchange and SBF, in particular, are alleged to have used funds to fund lobbying activities, real-estate investments, and personal property acquisitions.
Here are the latest developments:
JUST IN: The CFTC officially files fraud charges against Sam Bankman-Fried, demanding a jury trial pic.twitter.com/XvnjRwjwRK
— TheStreet (@TheStreet) December 13, 2022
COMMODITY FUTURES TRADING
COMMISSION,
Plaintiff,
v.
SAMUEL BANKMAN-FRIED, FTX TRADING
LTD D/B/A https://t.co/nFry343Bq0, AND ALAMEDA
RESEARCH LLC, https://t.co/wYEzfuh3Hd— db (@tier10k) December 13, 2022
Tech Crunch writes:
The complaint from the U.S. securities regulator alleges that while Bankman-Fried presented FTX as “a safe, responsible crypto asset trading platform,” in reality the founder sometimes described as ‘crypto’s white knight’ was engaged in a “years-long fraud” designed to hide from FTX investors the fact that their funds were being redirected to SBF’s Alameda crypto hedge fund, while Alameda enjoyed a kind of favored status that protected it from the usual risk mitigation measures FTX employed.
CFTC alleges Sam Bankman-Fried's parents "used FTX
customer funds for a variety of personal expenditures," which may have included luxury real estate purchases, private jets, documented and undocumented personal loans, and personal political donations. pic.twitter.com/2aj6c1uXaU— Will Feuer (@WillFOIA) December 13, 2022
CFTC alleges Bankman-Fried knew the whole time pic.twitter.com/UNIaHF4mzM
— Cope (it's, over) (@Timccopeland) December 13, 2022
CoinDesk reports on the pending S.E.C. litigation:
The U.S. Securities and Exchange Commission (SEC) has charged Sam Bankman-Fried, the former CEO of defunct crypto exchange FTX, for defrauding investors of his platform, according to a release on Tuesday.
Legal filings posted on Tuesday claims that Bankman-Fried inappropriately used customer funds to bail out the supposedly separate trading arm Alameda Research, and fund both Bankman-Fried’s personal lifestyle and political donations.
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