Tr?id=566623520170033&ev=PageView&noscript=1

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
Quotes Bigger

As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.

LATEST NEWS AND ARTICLES

1783012078 Law
July 2, 2026
Financial Services Institute Backs New Jersey Bill Protecting Independent Advisor Model

The Financial Services Institute (FSI) has urged New Jersey lawmakers to advance legislation that would help preserve the independent contractor status of financial advisors operating in the state.

1782920284 Law
July 1, 2026
Private Credit Funds Face Scrutiny Over Software Exposure Amid Investor Concerns

Private credit fund managers are facing increased scrutiny over their exposure to software companies as investors continue to pull money from the sector during ongoing market volatility.

1782836587 Law
June 30, 2026
FINRA Signals Stronger Enforcement Focus on Reg BI, Excessive Trading, and Best Execution

The Financial Industry Regulatory Authority (FINRA) plans to intensify its enforcement efforts against Regulation Best Interest (Reg BI) violations, excessive trading, options trading, churning, and best execution failures after bringing a record number of retail investor protection cases in 2025, according to ThinkAdvisor.