FTX accused of manipulating the price of bitcoin futures on the Binance exchange

A lawsuit has been filed against the cryptocurrency derivatives exchange FTX, according to which the platform is accused of market manipulation and unregistered sale of securities in the United States.

About it informs Chain podcast author Samuel McCulloch. At the same time, no official statements from FTX have been received at the moment.

The plaintiff is the organization Bitcoin Manipulation Abatement LLC, which claims to recover $ 150 million from FTX and accuses the exchange of manipulating the price of bitcoin futures on the Binance site.

“The defendants were caught red-handed at around 9:00 p.m. EDT (13:00 p.m. GMT) on September 15 this year. In order to implement a fraudulent scheme, they made two attempts to manipulate the price of bitcoin futures on the Binance exchange, ” is celebrated in a lawsuit.

Bitcoin Manipulation Abatement emphasized that the manipulation was unsuccessful, since the price of Binance futures is calculated using the index, which allows you to protect yourself from small attacks.

“The plaintiffs, in fact, claim that FTX used its positions to trigger the movement of the futures price and provoke a cascading liquidation of positions,” McCullough notes.

Recall that in early October, a class action lawsuit was filed in the District Court of the Southern District of New York against the cryptocurrency exchange Bitfinex and the issuer of the stablecoin Tether for $ 1.4 trillion, which is several times higher than the capitalization of the entire cryptocurrency industry.