The SEC has charged former FTX CEO Sam Bankman-Fried with defrauding investors by misrepresenting the exchange’s risk management mechanisms and diverting customer funds to his own firm, Alameda Research.

The SEC also claims that Bankman-Fried concealed Alameda’s exemption from FTX’s risk management policies.

As a result, the SEC is seeking injunctions and monetary penalties, as well as asking that Bankman-Fried be barred from senior corporate positions.

FTX filed for bankruptcy in November 2022 due to a liquidity crisis and Bankman-Fried is facing criminal charges and an October 2023 trial date. He is currently out on bond and has started a blog to defend himself.