FTT price drops by over 13% as CFTC sues FTX, Sam-Bankman Fried and Alameda with fraud charges
|- The former FTX CEO is facing a lawsuit from the CFTC for violation of the Commodity Exchange Act.
- Sam Bankman-Fried was recently arrested in the Bahamas at the behest of the United States.
- Sam-Bankman Fried is also facing charges from the Securities and Exchange Commission for fraud.
FTX brought the entire crypto market down when it came to an end. Its former head Sam Bankman-Fried pledged honesty, but the same sentiment is seemingly not shared by the law. Consequently, authorities are now taking action against the ex-Chief Executive Officer of the bankrupt exchange.
Sam Bankman-Fried to face the jury
FTX's collapse has been blamed on Sam Bankman-Fried by the community and key officials of the relevant authorities. However, The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) only took charge on Tuesday.
The CFTC took a step further to file a lawsuit against Sam Bankman-Fried on the grounds of violation of the Commodity Exchange Act and also demanded a jury trial. The CFTC is alleging that Sam Bankman-Fried not only allowed but also enabled the comingling of funds.
The complaint has been registered for injunctive and other equitable relief as well as civil monetary penalties against FTX Trading, Sam Bankman-Fried and Alameda Research. Following the complaint filing, the CFTC said,
"On information and belief, Bankman-Fried, his parents, and other FTX and Alameda employees used FTX customer funds for a variety of personal expenditures, including luxury real estate purchases, private jets, documented and undocumented personal loans, and personal political donations."
The complaint from the CFTC came hours after the SEC announced it would be charging Sam Bankman-Fried with conspiracy and wire fraud, securities fraud and conspiracy and money laundering.
Earlier on Monday, as reported by FXStreet, Sam Bankman-Fried was also arrested in The Bahamas by the authorities. At the request of the United States, the former FTX CEO was brought in and is reportedly set to be extradited to the US.
FTT price takes a hit
Following the revelations of Sam Bankman-Fried's arrest and subsequent filing of charges by SEC and CFTC, FTX's native token, FTT, lost its ground. The altcoin could be seen trading at $1.39 and down by over 13.5% in the span of 24 hours.
FTT/USDT 1-day chart
FTT holders' expectations had recently improved after noting an almost 25% hike in value which, as of Tuesday, has been squashed along with the prices.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.