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SBF, FTX, Alameda Sued by the CFTC for Commodities Laws Violations

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The US Commodity Futures Trading Commission has today announced a lawsuit against Samuel Bankman-Fried (SBF), FTX trading Ltd., FTX.com and Alameda Research LLC, filed at the United States District Court for the Southern District of New York.

CFTC is Charging SBF, FTX and Alameda With Violating Commodities Laws

The CFTC is charging the three entities with the violations of two existing commodities laws and regulations.

Firstly, SBF, FTX and Alameda are being charged with violating the commodity exchange act and regulations by orchestrating fraud.

The lawsuit explains that the defendants ‘intentionally or recklessly, in connection with contracts of sale of commodities in interstate commerce, directly or indirectly: used or employed, or attempted to use or employ, a scheme or artifice to defraud; and/or engaged in, or attempted to engage in, acts, practices, or a course of business that operated or would operate as a fraud or deceit on customers of FTX Trading.’

Secondly, the CFTC is charging the defendants with ‘fraudulent misstatements of material fact and material omissions.’

The regulator states that the defendants ‘intentionally or recklessly, directly or indirectly made, or attempted to make, in connection with contracts of sale of commodities in interstate commerce, untrue or misleading statements of material fact, or omitted to state material facts necessary to make the statements made not untrue or misleading.’

CFTC Joins the SEC and the US SDNY in Pressing Charges Against SBF

The CFTC is the latest regulatory agency to charge SBF after the SEC earlier today announced similar charges against the former FTX CEO of fraud in the offer or sale of securities and fraud in connection with the purchase or sale of securities.

The United States District for the Southern District of New York (US SDNY) had earlier charged SBF with the following six counts:

  • Conspiracy to commit wire fraud on customers
  • Wire fraud on customers
  • Conspiracy to commit wire fraud on lenders
  • Wire fraud on lenders
  • Conspiracy to commit commodities fraud
  • Conspiracy to commit securities fraud
FTX Alameda SBF CFTC
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