{"id":15435,"date":"2022-12-13T23:32:41","date_gmt":"2022-12-13T23:32:41","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/cftc-follows-sec-by-filing-a-lawsuit-against-disgraced-ftx-co-founder-sam-bankman-fried-bitcoin-news\/"},"modified":"2022-12-13T23:32:41","modified_gmt":"2022-12-13T23:32:41","slug":"cftc-follows-sec-by-filing-a-lawsuit-against-disgraced-ftx-co-founder-sam-bankman-fried-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/cftc-follows-sec-by-filing-a-lawsuit-against-disgraced-ftx-co-founder-sam-bankman-fried-bitcoin-news\/","title":{"rendered":"CFTC Follows SEC by Filing a Lawsuit Against Disgraced FTX Co-Founder Sam Bankman-Fried \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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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, \u201cthroughout the relevant period,\u201d including both fiat currencies and cryptocurrencies, were reportedly \u201cappropriated by Alameda for its own use.\u201d<\/strong><\/p>\n

U.S. Commodity Futures Trading Commission: \u2018FTX and Alameda Comingled, Mishandled, and Misappropriated FTX Trading Customer Funds\u2019 From Day One<\/h2>\n

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 \u201cat Bankman-Fried\u2019s direction, FTX executives created features in the underlying code for FTX that allowed Alameda to maintain an essentially unlimited line of credit on FTX.\u201d<\/p>\n

\"CFTC
The CFTC lawsuit against Sam Bankman-Fried, the co-founder of FTX Trading Limited.<\/figcaption><\/figure>\n

The CFTC alleges that SBF and his inner circle \u201ctook hundreds of millions of dollars\u201d in loans from Alameda and used the funds for Bahamian real estate, \u201cpolitical donations, and for other unauthorized uses.\u201d<\/p>\n

The CFTC\u2019s court filing insists:<\/p>\n

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Through this conduct and the conduct further described herein, [the] defendants violated Section 6(c)(1) of the Commodity Exchange Act.<\/p>\n<\/blockquote>\n

The U.S. commodities regulator is seeking \u201ccivil monetary penalties and remedial ancillary relief.\u201d Furthermore, like the recent SEC charges<\/a>, 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 \u201crelevant period,\u201d the CFTC court document declares. For instance, Alameda Research is a Delaware limited liability company registered in the United States.<\/p>\n

\u201cThe 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,\u201d the CFTC lawsuit alleges. \u201cThe 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,\u201d the court document adds.<\/p>\n

The U.S. CFTC court document further states:<\/p>\n

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FTX and Alameda comingled, mishandled, and misappropriated FTX Trading customer funds from the moment of FTX\u2019s launch.<\/p>\n<\/blockquote>\n

The recently published charges<\/a> 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\u2019s lawsuit, as both complaints note that Alameda allegedly had an \u201cunlimited\u201d line of credit that derived from FTX and essentially customer funds. In addition to the CFTC, the Southern District of New York\u2019s Attorney\u2019s office indicted<\/a> SBF with eight counts of financial crimes charges.<\/p>\n

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Alameda Research<\/a>, CFTC<\/a>, Commodity Futures Trading Commission.<\/a>, Customer Funds<\/a>, Fraud<\/a>, FTX collapse<\/a>, FTX Sam Bankman-Fried<\/a>, FTX’s collapse<\/a>, FTX\u2019s launch<\/a>, Lawsuit<\/a>, Sam Bankman-Fried<\/a>, sbf<\/a>, SBF CFTC<\/a>, SEC<\/a>, SEC charges<\/a><\/div>\n<\/div>\n

What do you think about the CFTC\u2019s lawsuit against FTX and Sam Bankman-Fried? Let us know what you think about this subject in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie 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.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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