The Commodity Futures Trading Commission sued Sam Bankman-Fried, FTX and Alameda Research for violations of federal commodities laws.
(Bloomberg) — The Commodity Futures Trading Commission sued Sam Bankman-Fried, FTX and Alameda Research for violations of federal commodities laws.
The top US derivatives regulator claims Bankman-Fried and other FTX executives took hundreds of millions of dollars in loans from Alameda they used to buy real estate and make donations to politicians.
“At Bankman-Fried’s direction, FTX executives created features in the underlying code for FTX that allowed Alameda to maintain an essentially unlimited line of credit on FTX,” the CFTC said in a complaint filed Tuesday in Manhattan federal court.
Bankman-Fried was the only individual defendant listed in the complaint.
The CFTC’s case would add to the significant legal troubles already facing Bankman-Fried. The Securities and Exchange Commission on Tuesday accused him of carrying out a multi-year scheme to defraud investors. He’s also facing US criminal charges and was arrested Monday in the Bahamas.
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