The U.S. Commodities Futures Trading Commission is suing Sam Bankman-Fried (FTX) and Alameda Research, former CEOs of FTX, for violating federal commodity laws.
Bloomberg reported that Bloomberg claimed that the regulator claimed in its Manhattan federal court filing, that SBF and other FTX executives borrowed millions of dollars from Alameda to purchase real estate and make 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.
Bahamas authorities arrested the former CEO of the bankrupt FTX Exchange and could extradite him to the USA for further trials.
CryptoSlate first published the post CFTC sues FTX, SBF and Alameda in relation to violations of commodities law.