Today the Securities and Exchange Commission (SEC) has filed a lawsuit against Sam Bankman-Fried, alleging he defrauded equity investors in FTX Trading.
“From the start, Bankman-Fried improperly diverted customer assets to his privately-held crypto hedge fund, Alameda Research LLC (“Alameda”), and then used those customer funds to make undisclosed venture investments, lavish real estate purchases, and large political donations,” reads the complaint.
Additionally, it alleges Alameda had special treatment on the FTX platform, including an unlimited line of credit. And it failed to disclose risks relating to FTX-affiliated tokens such as FTT.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
