Sam Bankman-Fried Charged by SEC With Fraud Over FTX Collapse

Posted on December 14th, 2022 at 3:21 PM
Sam Bankman-Fried Charged by SEC With Fraud Over FTX Collapse

From the Desk of Jim Eccleston at Eccleston Law.

The Securities and Exchange Commission (SEC) has charged FTX founder Sam Bankman-Fried with eight criminal counts, including conspiracy and wire fraud, for allegedly misappropriating billions of dollars in customer funds.

An indictment detailing the charges was unsealed after Bankman-Fried was arrested in the Bahamas on Monday evening. According to the SEC’s complaint, Bankman-Fried raised nearly $1.8 billion between May 2019 and November 2022 from investors who believed that FTX utilized appropriate controls and risk management procedures. However, Bankman-Fried regularly siphoned customer funds to his privately-held crypto hedge fund, Alameda Research, according to the SEC. The SEC further alleges that Bankman-Fried then used customer money to fund undisclosed venture investments, real estate purchases, and large donations to political candidates. Specifically, the indictment alleges that Bankman-Fried worked with others to make corporate contributions to political candidates and committees that exceeded the $25,000 annual limit.

Additionally, the SEC has accused Bankman-Fried of making false and misleading statements when he allegedly informed prospective investors that FTX used sophisticated automated risk measures to protect customer funds and that Alameda was merely another platform customer with no special privileges. After his arrest Monday evening, Bankman-Fried spent the night at a Nassau police station and will have the choice between contesting extradition to the U.S. to face the charges or waiving his right to a hearing. Request for bail has been denied.
The Commodities Futures Trading Commission (CFTC) also has filed suit.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, sec

Return to Archive

TESTIMONIALS

Previous
Next

I am so blessed to have you and your dynamic team defending me. Your ethics, forward thinking and strategies are amazing.  You guys are the best group of attorneys in the country that I could hire to handle this complicated case.

Cindy C.

LATEST NEWS AND ARTICLES

September 5, 2025
Merrill Lynch Advisor Faces FINRA Disciplinary Action for Refusing to Cooperate with Investigation

The Financial Industry Regulatory Authority (FINRA) has initiated disciplinary proceedings against former Merrill Lynch broker Ali F. Chehab of Portland, Oregon. According to ThinkAdvisor, FINRA alleges that he refused to cooperate in an investigation into potential misconduct, including unauthorized trading and material misrepresentati...

September 4, 2025
Wells Fargo Ties $2,000 Bonus to Non-Solicitation Clause, Raising Advisor Concerns

Wells Fargo & Co. recently issued a $2,000 bank-wide award to its 215,000 employees, following the Federal Reserve’s June decision to lift its asset growth restrictions.

September 3, 2025
Kansas City Advisory Firms Agree to $25.5 Million Settlement Over No-Poach Allegations

Mariner Wealth Advisors, along with two other Kansas City-area firms, has agreed to a $25.5 million class action settlement over allegations that they illegally agreed not to solicit each other’s advisors.