Sam Bankman-Fried was convicted on all charges in the Department of Justice’s fraud case against the ex-FTX chief, but his legal woes are far from over. He is also under pressure from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), which have slammed him with accusations of both securities and digital commodities fraud. Additionally, Bankman-Fried is grappling with a class action lawsuit alongside a list of celebrity FTX endorsers.
FTX Boss Sam Bankman-Fried Still Faces Maze of New Legal Hurdles
A year to the day after Coindesk lifted the veil on Alameda Research’s balance sheet, Sam Bankman-Fried faced his jury’s unanimous guilty verdict. The onetime cryptocurrency tycoon could spend over a century behind bars, pending the outcome of the Department of Justice’s (DOJ) fraud case. As it stands, his sentencing is set for March 28, 2024, unless there are new developments.
The storm of litigation continues for Bankman-Fried with a class action lawsuit in a Miami federal court. This lawsuit springs from a horde of investors convinced they were duped. The investors’ ire also extends to celebrities like “Seinfeld” director Larry David and NFL star Tom Brady, whom they also accuse of complicity in the fraud. The Miami litigation demands reparations for the staggering $8 billion FTX is accused of pilfering from its clients.
The recent guilty verdict against Bankman-Fried does him no favors as he navigates through his mounting legal challenges. His legal troubles were compounded when the SEC and CFTC lodged their own complaints against him on December 13, 2022. The SEC’s filing charged Bankman-Fried with perpetrating a prolonged scam, stealthily funneling FTX client funds to his own crypto hedge fund, Alameda Research.
Concurrently, on the same day, the Commodity Futures Trading Commission (CFTC) initiated legal proceedings in the U.S. District Court for the Southern District of New York against Bankman-Fried and his companies. The CFTC alleges that Bankman-Fried’s dealings resulted in deceptive practices and significant falsehoods in the marketing of digital commodities across state lines.
The legal onslaught from the DOJ, SEC, and CFTC emerged in close succession, and on February 13, 2023, a federal judge ordered a halt to the SEC and CFTC actions pending the completion of the DOJ case. Consequently, these lawsuits, along with the Miami class action, loom large for Bankman-Fried.
With his conviction, the possibility of further lawsuits against other high-ranking FTX officials and associates looms. The aftermath of the FTX collapse has proven lucrative for the legal professionals tasked with untangling this complex web, with their high fees reflecting the intricate work involved.
What do you think about Bankman-Fried’s unsettled legal matters? Share your thoughts and opinions about this subject in the comments section below.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments