The United States Commodities Futures Trading Commission has filed a lawsuit against the former CEO of FTX, Sam Bankman-Fried, as well as FTX and Alameda Research, alleging that they broke federal regulations governing commodities trading.
According to Bloomberg (1), the regulator contends in its lawsuit with the Manhattan federal court that SBF and other FTX officials accepted loans from Alameda totaling millions of dollars and used the money to acquire real estate and make political donations.
In addition, the CFTC asserts in its complaint that SBF directed executives at FTX to develop features in the code of the exchange that made it possible for Alameda to have “a practically unlimited line of credit on FTX.”
Soon after the SEC sued the creator of FTX for allegedly scamming investors of around $1.8 billion, the Commodity Futures Trading Commission (CFTC) announced its intention to bring criminal charges against SBF.
The former chief executive officer of the FTX exchange, who was arrested on December 12 by the police in the Bahamas, may be extradited to the United States to face more charges there.