The US Commodity Futures Trading Commission is suing former FTX CEO Sam Bankman-Fried, FTX and Alameda Research for violating federal commodity laws.
reported that the regulator alleges in its filing in federal court in Manhattan that SBF and other FTX executives borrowed millions of dollars from Alameda and used the money to purchase real estate and political donations.
In addition, the CFTC claims in its lawsuit that SBF directed FTX executives to create features in the exchange’s code that would allow Alameda to have “an essentially unlimited line of credit on FTX.”
The CFTC’s plan to prosecute SBF comes shortly after the Securities and Exchange Commission (SEC) charged the FTX founder with allegedlyinvestors of about $1.8 billion.
The former CEO of the bankrupt FTX exchange was arrested on December 12 by Bahamian authorities and could be extradited to the US for further trials.
The chargefirst appeared in .