SEC Chooses ‘Simpler Case’ in Pursuing FTX’s Bankman-Fried

US securities regulators could’ve taken various routes in pursuing a civil suit against FTX co-founder Sam Bankman-Fried. They chose the path of least resistance.

The Securities and Exchange Commission tailored its accusations to focus largely on Bankman-Fried allegedly defrauding FTX investors out of almost $2 billion in a multi-year scheme. The complaint highlighted various representations the now-arrested executive allegedly made to investors.

A large part his fraud was concealing risks and FTX’s relationship with his trading firm Alameda Research, the agency said.

It was a conservative approach by the SEC, lawyers said. The agency steered clear of allegations that would ...