Bankman-Fried Faces SEC Fraud Suit Over Scheme to Promote Crypto Exchanges

As a manner to maintain FTX and the businesses below its umbrella profitable, Bankman-Fried allegedly approached builders in the back of projects, insisting that they make their buying and selling debuts at the alternate`s platform.

The trouble turned into that the alternate had no real enterprise to provide builders. The business enterprise didnt have any customers, and it wasnt producing sales through providing its personal products. In fact, its handiest sales got here from price price tag income at activities including FTX Summit or from commissions paid through its affiliates.

In early 2018, Bankman-Fried filed for financial ruin safety after failing to pay dozens of vendors. When Bankman-Fried turned into equipped to liquidate its assets, there had been nonetheless lots of bucks in brilliant invoices ready to be paid.