CFTC files Lawsuit against FTX former CEO SBF
Now Sam Bankman-Fried (SBF) is under another regulatory heat because of the US CFTC agency.
The United States Commodity Futures Trading Commission (CFTC) is a leading financial market regulatory body, which also regulates some portions of the crypto sector under Commodity laws. Perhaps CFTC has only limited rights under its jurisdiction system to regulate the crypto market but still, CFTC officials remain ready to impose the Commodities laws to regulate the crypto sector in favour of investor protection despite unclear regulatory laws in the United States.
On 13 December, The CFTC filed a Lawsuit against Sam Bankman-Fried (SBF), founder & former CEO of FTX crypto exchange, and FTX exchange along with its affiliated company Alameda Research.
The filed lawsuit against SBF from CFTC is an effort from this government-backed financial market regulatory body for injunctive and other equitable relief as well as civil monetary penalties against Bankman-Fried.
According to the CFTC agency, SBF violated the Commodity Exchange Act and he should be punished for such violations also.
CFTC noted that FTX’s sister company Alameda Research used the FTX user’s funds without informing the users.
Agency further added:
“On information and belief, Bankman-Fried, his parents, and other FTX and Alameda employees used FTX customer funds for a variety of personal expenditures, including luxury real estate purchases, private jets, documented and undocumented personal loans, and personal political donations.”
CFTC also alleged that SBF personally directed FTC executives to set up features allowing his close friends, relatives & affiliated companies to take funds from FTX without any barrier.
Interestingly, in the CFTC court filing, the agency treated Bitcoin, Ethereum & Tether as commodity assets under its jurisdiction. Which was opposite to the recent statement passed by a former CFTC official, who said that Bitcoin was only a commodity in his views.
Recently a written testimony from SBF came into light, where SBF claimed that FTX’s downfall happened because of others & there wasn’t any fault by his side.
Read also: Tether pledges it will reduce secured loans to zero in 2023
