FTX – the cryptocurrency exchange under bankruptcy protection, appears to have extended special treatment towards its sister hedge fund – Alameda Research, according to the ongoing lawsuit.
Court filings has shed more light on the cozy relationship that burned down Sam Bankman-Fried’s empire. In its own suit, the Commodity Futures Trading Commission said Alameda enjoyed special access to FTX’s trading backend. It could execute trades faster than other customers and was exempt from auto-liquidation, both “unfair advantages,” the suit said. And it could borrow as much money as it liked.
“There was no meaningful distinction between FTX customer funds and Alameda’s own,” the U.S. Securities and Exchange Commission alleged Tuesday. Alameda is said to have improperly siphoned $8 billion from customers of the now-bankrupt FTX.
In its own suit, the Commodity Futures Trading Commission said Alameda enjoyed special access to FTX’s trading backend. It could execute trades faster than other customers and was exempt from auto-liquidation, both “unfair advantages,” the suit said. And it could borrow as much money as it liked.
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