CFTC suing SBF, FTX and Alameda for commodities law violations CFTC suing SBF, FTX and Alameda for commodities law violations
The CFTC claims in its complaint that SBF ordered FTX executives to create features in the exchange's code that allowed Alameda to have "an essentially unlimited line of credit on FTX."
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Updated: Aug. 22, 2023 at 2:33 am UTC
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The U.S. Commodities Futures Trading Commission is suing former FTX CEO Sam Bankman-Fried, FTX and Alameda Research for violating federal commodities laws.
Bloomberg reported that the regulator alleges in its Manhattan federal court filing that SBF and other FTX executives took loans in the millions of dollars from Alameda and put the money towards buying real estate and political donations.
In addition, the CFTC claims in its complaint that SBF ordered FTX executives to create features in the exchange’s code that allowed Alameda to have “an essentially unlimited line of credit on FTX.”
The CFTC’s plan to prosecute SBF is coming shortly after the Securities and Exchange Commission (SEC) charged the FTX founder for allegedly defrauding investors of about $1.8 billion.
The former CEO of the bankrupt FTX exchange was arrested on Dec. 12 by the Bahamas authorities and could be extradited to the US for further trials.
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Christian Nwobodo
Christian is a crypto-curious nerd who loves to investigate how protocols work under the hood. Christian is interested in DeFi protocol research, token economics, and on-chain analytics.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Alameda Research
Alameda Research was once a principal trading firm, operating as an arm of the failed crypto exchange, FTX.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.
