After SEC, CFTC Moves for FTX and Sam Bankman-Fried!

U.S. Commodity Futures Trading Commission, Sam Bankman-Fried, cryptocurrency sued FTX and Alameda Research for violating federal commodity laws.

CFTC Accuses Sam Bankman-Fried of Personal Spending with Customer Assets

The top US derivatives regulator claims that Bankman-Fried and other FTX executives took hundreds of millions of dollars in loans from Alameda, which they used to buy real estate and donate money to politicians.

“At Bankman-Fried’s direction, FTX administrators implemented features in FTX’s base code that allowed Alameda to maintain an essentially unlimited line of credit on FTX,” the CFTC said in its filing in Manhattan federal court on Tuesday.

Bankman-Fried is listed as the only individual defendant listed in the complaint.

The CFTC’s lawsuit will add to the major legal problems Bankman-Fried is currently facing.

On Tuesday, the US Securities and Exchange Commission accused itself of running a multi-year scheme to defraud investors. He is also facing criminal charges in the US and was arrested in the Bahamas on Tuesday.

In addition, the text of the statement that the SBF would give in the US Senate if he was not arrested was leaked to the press. The leaked text does not seem to add much to the SBF’s earlier arguments.

According to SBF, the new CEO and legal team played a role in causing FTX, and especially the US branch, to fall into this situation. SBF also claims that people around him pressured him to file for bankruptcy for his company.

*Not investment advice.