The US government said it was a lie. If it is true, Sam Bankman-Fried hasn't been telling the truth for a long time. Bankman- Fried operated Alameda Research and FTX as a common enterprise. The complaint is not criminal.
Damian Williams, the US attorney, said that Alameda Research and FTX were one of the largest financial frauds in American history.
Bankman-Fried said that he wasn't running Alameda and that he didn't know what was happening at the research center. That isn't true according to the complaint. Bankman-Fried was an authorized trader for Alameda's accounts with the Commodity Futures Trading Commission. He was in charge of all of Alameda's major trading, investment, and financial decisions. He made calls in person and over the phone.
The complaint alleges that FTX customer deposits were held by Alameda for its own use over the course of a year. A small group of people knew that. There were special exceptions to FTX's usual processes that gave Alameda faster execution times.
Bankman- Fried wanted the world to think there was a separation between the two entities. He resigned as the CEO of Alameda due to that.
Wait! There is more to come. When FTX was on the verge of collapse, Alameda Research's traders were told to sell everything, fast, and generally do anything possible to quickly obtain billions of dollars in capital to send to FTX. Bankman- Fried confirmed it when a trader summarized it to him. According to the complaint, he asked for theETA on getting at least $2b ofUSD.
When FTX executives found a shortfall in FTX US, Bankman- Fried said he would fill the hole using Alameda Research's assets. The complaint says that Alameda sent more than $185 million.
The CFTC made a strong argument that this could be false, as Ellison previously stated that she and Bankman- Fried keep the two companies separate.
Senior managers at both Alameda and FTX are accused of having access to each other's systems and accounts.
Key personnel, technology and hardware, intellectual property, and other resources were shared between the two teams.
Bankman-Fried said in an interview that he didn't knowingly commingle funds between FTX and Alameda The government doesn't think that's true.
Customers were told to wire their money to Alameda Research when Bankman-Fried launched FTX. The complaint says that the funds were put into accounts for the benefit of FTX customers. FTX's internal ledger system labeled the Alameda accounts as "fiat@ftx"
Alameda and FTX shared funds for a long time, according to the agency. The complaint says that Alameda used FTX customer funds for its own operations and activities.
Money sent to its own bank accounts isn't the only thing Alameda is accused of. The SEC said it had the ability to make unlimited withdrawals from its FTX trading account.
Bankman-Fried, his parents, and his employees at FTX and Alameda used customers' funds for personal benefit, according to the Commodity Futures Trading Commission. Customer funds were used for a Super Bowl commercial starring Larry David. The advertisements said that FTX was the safest and easiest way to buy and sell coins.
None of the digital assets in a user's account will be lent to FTX Trading, according to FTX's terms of service. That was a lie according to the complaint. The complaint says that FTX customers didn't know that their funds were being used for research.
According to the complaint, Bankman-Fried may have lied to Congress about FTX's terms of service. Bankman- Fried told US lawmakers that FTX separated customer assets from its own assets.
The reputation of Bankman- Fried as a liberal do-gooder was built on his generous donations to Democrats and progressive groups. The Southern District Court of New York indicted SBF for violating multiple campaign finance laws over the course of three years.
Damian Williams, the US attorney, said in a Tuesday press conference that SBF's contributions were funded by Alameda Research's stolen customer money.