FTX’s Systems Gave Alameda Trades a Secret Speed Edge, CFTC Says
- CFTC says Alameda able to skirt some steps to execute orders
- It adds that Alameda’s advantages weren’t ‘publicly disclosed’
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Sam Bankman-Fried’s trading house Alameda Research had a secret speed advantage when executing orders on his now-collapsed FTX crypto exchange, according to the US Commodity Futures Trading Commission.
Alameda, which also tumbled into bankruptcy last month along with FTX, was able to skirt certain portions of the exchange’s trading architecture and sidestep some automated verification processes, the CFTC said in a complaint filed Tuesday in Manhattan federal court.