The SEC accused former FTX CEO Sam Bankman-Fried of defrauding investors and took him to court.
The US Securities and Exchange Commission continues to target FTX founder SBF.
SEC Steps Up On FTX-Related Moves
The regulator made the statement on the subject on its official website.
According to the statement, SBF raised approximately $1.8 billion in funds from investors and secretly directed these funds to Alamede Research.
The Commission also stressed that the investigation into other institutions and individuals regarding other securities law violations and alleged misconduct is continuing.
According to the SEC’s complaint, FTX has raised more than $1.8 billion from investors since May 2019. Among the fundraisers, there were 90 US-based investors. It was stated that 1.1 billion dollars of investments came from US investors.
The complaint also deceived customers by saying that SBF made FTX a safe and responsible trading platform.
The SEC’s application focused on three issues. The first was that SBF secretly transferred funds to Alameda Research, while the second was that it provided Alameda with a nearly unlimited line of credit from client funds. Finally, attention was drawn to the undisclosed risks from FTX’s investment in overvalued and illiquid assets such as Alameda’s FTX-linked tokens.
The statement further alleged that SBF used funds from clients to invest in obscure ventures, buy luxury real estate, and make large political donations.