December 13, 2022 US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Sam Bankman-Fried (SBF), FTX Trading LTD., and Alameda Research. The CFTC claims that FTX customer deposits “during the relevant period”, including both fiat and cryptocurrencies, were “reappropriated by Alameda for its own use.”
US Commodity Futures Trading Commission: “FTX and Alameda FTX trading customer funds were commingled, mishandled and diverted.”
US Commodity Futures Trading Commission (CFTC) filed a lawsuit against SBF and his companies FTX and Alameda Research (Case 1:22-cv-10503). The lawsuit alleges that “at the direction of Bankman-Fried, FTX executives created features into FTX’s underlying code that enabled Alameda to maintain an essentially unlimited line of credit on FTX.” I’m here.
The CFTC stated that the SBF and his aides “received hundreds of millions of dollars in loans” from Alameda and used the funds for real estate in the Bahamas, “political contributions, and other unauthorized uses.” claimed to have used
CFTC court filings allege that:
Through this act and the acts further described herein, defendants have You have violated Section 6(c)(1).
US commodities regulators seek “civil financial penalties and ancillary corrective remedies.” Moreover, similar to his recent SEC request, the CFTC wants SBF to be barred from trading activity. Because Bankman-Fried is a US citizen residing in various locations around the world, the CFTC believes he has jurisdiction over SBF. SBF and his company have also conducted commercial transactions in the United States for a “relevant period,” CFTC court documents declare. For example, Alameda Research is a Delaware limited liability company registered in the United States.
“FTX Enterprises shall not be liable for corporate procedures, including the segregation of funds, operations, resources, and personnel, or the failure to properly document intercompany transfers or funds and other resources. “The entities regularly shared office space, systems, accounts, and communication channels. It flowed freely between entities and was often not documented or effectively tracked,” the court documents add.
US CFTC Court documents further stated:
His December 13th U.S. Securities and Exchange Commission (SEC) indictment, which was recently made public, also indicates that the SEC believes his FTX fraud began on day one. I’m here. SEC claims are similar to CFTC litigation. That’s because both complaints point out that Alameda had an “unlimited” line of credit that was essentially derived from her FTX and customer funds. In addition to the CFTC, law firms for the Southern District of New York indicted SBF on eight counts of his financial crimes.
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