Sam Bankman-Fried, the founder and CEO of cryptocurrency exchange FTX, is facing a string of serious allegations brought forth by a former employee. According to her, Bankman-Fried instructed her to commit a variety of crimes in order to mislead lenders.
This former FTX employee, referred to as ‘TM’ in court documents, filed a complaint with the US District Court in San Francisco, accusing Bankman-Fried of ordering her to commit a series of fraudulent acts. TM claims that she was instructed to falsify documents and make false statements to potential lenders in order to secure financing for FTX. She also alleges that she was asked to use personal information of DTCC members, a company which specializes in investor protection, without their authorization.
The complaint further mentions that TM was told to lie about her qualifications in order to appear more credible to potential lenders. She was instructed to falsely state that she had an MBA degree, and would be in charge of handling FTX’s finances.
According to the complaint, Bankman-Fried also ordered TM to commit other illegal activities, such as altering documents to appease investors, engaging in insider trading, and engaging in market manipulation. Additionally, TM claims that she was intimidated and threatened when she resisted Bankman-Fried’s orders, and was ultimately terminated from FTX.
Legal representatives of Bankman-Fried have denied these claims, stating that they are false and have no basis in reality. Bankman-Fried himself has refused to comment on the matter at this time.
The claims made by TM have brought Bankman-Fried and FTX under the scrutiny of the public. This case will likely be closely watched in the coming weeks to see if Bankman-Fried’s alleged misconduct are proven in court. If he is found guilty of the alleged violations, it could have serious implications for the entire cryptocurrency sector.