Is FTX Alameda suing Bankman-fried?

The contentions of the people who spoke with NBC News are echoed in a 2019 lawsuit brought in federal court against FTX Alameda, Bankman-Fried and other executives.

Who is Sam Bankman-fried?

The U.S. Commodity Futures Trading Commission (CFTC) today announced a lawsuit against crypto exchange FTX founder Sam Bankman-Fried over alleged violations of federal commodities laws. Other defendants listed in the complaint are FTX and its affiliated company Alameda Research.

Why did Sam Bankman-fried start FTX?

Alameda Research, a small trading firm that Sam Bankman-Fried founded in 2017 at the age of 25, was the start of his crypto empire — and its undoing. Alameda’s need for funds to run its trading business was a big reason Mr. Bankman-Fried created FTX in 2019.

How profitable is Bankman-fried's Alameda?

Bankman-Fried has made many public pronouncements about his companies’ financials. Last year, he told Forbes that Alameda made $1 billion in profits in 2020. FTX’s leaked financial results from 2021 stated that it was profitable in 2021, with $388 million in net income, as reported by CNBC.