FTT price drops by over 13% as CFTC sues FTX, Sam-Bankman Fried and Alameda with fraud charges

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.