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US CFTC files lawsuit against cryptocurrency exchange FTX, founder Sam Bankman-Fried, his hedge fund

( December 13, 2022, 15:17 GMT | Official Statement) -- MLex Summary: The US Commodity Futures Trading Commission filed a lawsuit against the cryptocurrency exchange FTX, its disgraced founder Sam Bankman-Fried and his proprietary hedge fund, Alameda Research, alleging that unbeknownst to all but a small circle of insiders, FTX customers' deposits were regularly accepted, held by or appropriated by Alameda for its own use. At Bankman-Fried's direction, FTX executives created features in the underlying code that allowed Alameda to maintain an essentially unlimited line of credit on the platform, according to the complaint. Alameda also used FTX funds, including customer funds, to trade on other digital asset exchanges and to fund a variety of high-risk digital asset industry investments, and Bankman-Fried and other FTX executives also took hundreds of millions of dollars in poorly-documented “loans” from Alameda to purchase luxury real estate and property, make political donations, and for other unauthorized uses, the complaint said.See document below....

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