A lawsuit has been filed by the US Commodity Futures Trading Commission (CFTC) against SBF, his companies, and Almeida Research, which alleges that officials, at the direction of the former CEO, created a feature in the underlying code for FTX that made Almeida mandatory. The CFTC alleges that the SBF and its inner circle borrowed millions of dollars from Alameda and diverted that money for real estate, political donations and other illegal uses. where the filing emphasizes that this conduct is causing the US commodities regulator to seek a “civil monetary penalty and remedial injunctive relief” policy and that, in addition to the recent SEC charges, the CFTC seeks to restrict trader activity. And where it has jurisdiction, of course, where the ex-CEO resides and who lives in different places around the world. The CFTC court document noted that SBF and its companies had business dealings in the US for a relevant period. For example, Alameda Research is a Delaware limited liability company registered in the United States.
The CFTC’s lawsuit alleges that FTX failed to comply with enterprise corporate formalities most notably the separation of funds and operations and resources and the failure to properly document resources through intercompany transfers or funds. Here organizations routinely share office space and communication channels of systems and accounts, and assets flow freely between enterprise organizations on information and trust, often without documentation and effective tracking of everything affected. the court document further states
The trading ground was rigged and mishandled and misappropriated with the launch of FTX and Alameda FTX, and the report published by the US Securities and Exchange Commission on December 13 indicates that the SEC has committed fraud. began on day one and the SEC’s charges are similar to the CFTC’s lawsuit, as both complaints allege that Alameda had an unlimited credit line that FTX and essentially customer’s accumulated funds were obtained and that In addition, the Attorney’s Office for the Southern District of New York charged SBF with eight financial crimes.
