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

Thank you so very much for your guidance, patience, and expertise.

Beth and Steve K.

LATEST NEWS AND ARTICLES

November 7, 2025
FINRA Suspends Former Wells Fargo Broker Over Unapproved Real Estate Venture

The Financial Industry Regulatory Authority (FINRA) suspended former Wells Fargo broker George J. Cairnes for four months and fined him $25,000 for engaging in unapproved real estate outside business activity, according to a settlement letter issued.

November 6, 2025
Former Ameriprise Broker Ordered to Pay $2.2 Million for Elder Exploitation

A Financial Industry Regulatory Authority (FINRA) arbitration panel has ordered Eric A. Dupre to pay nearly $2.2 million in damages to his former firm and two customers following allegations of theft and elder exploitation.

November 5, 2025
Former Wells Fargo Representative Suspended for Unauthorized Texting and Obstruction

The Financial Industry Regulatory Authority (FINRA) has suspended former Wells Fargo representative Eyan M. Townsend for one year and fined him $10,000 for using personal text messages to conduct business and attempting to obstruct an internal investigation by deleting those communications.