The CFTC Files a Lawsuit Against FTX’s Former Head
The US Commodity Futures Trading Commission (CFTC) has just sued FTX’s and Alameda Research’s founder Sam Bankman-Fried for allegedly violating the Commodity Exchange Act.
According to the regulator, Sam Bankman-Fried “owned, operated and controlled” the centralized exchange FTX and its subsidiaries, including Alameda.
The CFTC alleges the defendants (both companies) illegally used client funds for personal consumption and profit. SBF and other FTX executives have taken hundreds of millions of dollars in “undocumented loans” from Alameda to buy luxury real estate, political donations and other misuse.
Per the lawsuit:
“At the direction of Bankman-Fried, FTX management created features in the underlying code of the exchange that allowed Alameda to have a virtually unlimited line of credit on the platform.”
