FTX Getting Sued for Alleged Manipulation of Bitcoin Future Prices

FTX Exchange Review

FTX, a cryptocurrency derivatives exchange has bagged a $150 million lawsuit from Bitcoin Manipulation Abatement LLC. The lawsuit was based on the premise that FTX violated the rules guiding cryptocurrency, by manipulating markets and peddling unregistered securities in the US. The lawsuit was uploaded onto social media by End of the Chain host, Samuel McCulloch on the 3rd of November. Part of the lawsuit filing accuses FTX of “attacking” Binance exchange. The plaintiff is suing FTX for exemplary and punitive damages.

The plaintiff’s attorneys claim that FTX made use of several accounts to exploit Binance’s Bitcoin futures sometime in September. The lawsuit filing stated that the defendants were caught on the 15th of September 2019 while they were in the act of a deceptive and manipulative scheme. It also stated that the defendant tried, on two illegal occasions, to manipulate the price of Bitcoin futures listed on Binance but was unsuccessful.

The attorneys went on to say that Binance didn’t give in to the attack because its BTC prices are computed through the use of an index. This secured it from light-scale trials to control the direction of the market.

McCulloch summarizes the lawsuit as thus; the plaintiff argues that FTX took advantage of its capacity to falsify BTC prices by using ignition algorithms, to generate excessive liquidation. However, FTX has still not commented on the matter.

Sister Company Facing Lawsuit As Well
In light of the matter, quantitative trading company, BitMEX is still the focus in most news headlines concerning the issue of information leak. BitMEX has come forward to say that they are being used as targets of legal actions. Interestingly, both companies share the same CEO.

The CEO, Almeda, stated that the lawsuit making rounds on the internet against them was filled with ludicrous inaccuracies. He went on to say that they were victims of ill-intended parties who want to defame and extort the company as it is growing in popularity.

FTX Crypto Derivatives Exchange: The New Trend in Future Options Trading

With a growing demand for crypto derivatives trading, new crypto derivatives exchange platforms are now emerging. Derivatives trading, account for more than half of 24-hour trading volumes recorded. The new chip on the block is FTX, crypto derivatives exchange from FTX trading ltd, a company based in Antigua and Barbuda.

More on FTX
FTX crypto offerings consist of futures, FTT token which is leveraged and OTC trading. It has created a niche for itself by its leveraged token and trading indices. Though quite new, trades recorded on it may not have been substantial, but analysts believe with the variety of crypto offerings it’s giving, it may soon witness phenomenal growth.

Recently, FTX brought on board its trading indices, eight well-known cryptocurrencies that are China-linked. These are BTM, IOST, NEO, NULS, ONT, QTUM, TRX, and VET.

FTX has also built a name for itself in China despite china’s anti-crypto stance. The coins will be available to traders as a perpetual futures contract while providing a leverage time value of more than a hundred.

Listed on its platform for futures trading are major cryptocurrencies and index coins like Bitcoin(BTC), Ethereum(ETH), Litecoin (LTC), Ripple(XRP), Altcoin Index, Midcap Index, Shitcoin Index, and Exchange Token Index.

FTX Features
FTX gives you ‘leverage’ on your capital with its leverage time value of more than a hundred.

Its futures contract has a time tenure of the current quarter, next quarter and a perpetual future(DRGN-PERP).

FTX futures are Stablecoins-settled so this allows you to make deposits with Stablecoins while capturing your profit and loss(PNL) also. Thus, no need for bank account linkage.

Flexible collateral which may be Stablecoins or fiat currency.

No deposit or withdrawal fee.

Low trading fees that target the high volume user.

Bonus for sign up through referrals for its users.

Being backed by Alameda Research, a top cryptocurrency liquidity provider, FTX has access to top order books.

Various payment methods in the form of deposits like TUSD, USDC, PAX, Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Tether, Stablecoins and others which are FTX recognized are accepted on its platform.

FTX index futures contracts are the first of its kind.

FTX also offers its users the ability to activate 2 Factor Authentication (2FA) using Authy or Google Authenticator.

FTT: FTX Leveraged Tokens
Its Leveraged Tokens are ERC20 tokens that help users manage risk while reinvesting profits back into the asset being traded.

Is FTX Legit?
Not much can be said as regards this since it is still new but there have not been any regulatory violations or theft cases since its inception. However, details about the FTX method of storage of user funds are relatively unknown.

FTX Verification
The need for verification may arise for withdrawals above a thousand USD and for users who wish to increase their withdrawal limits. For this, an identity proof document with proof of address, ID document, the scanned front and back with a picture tagged “FTX” and date may be required.

Ending
FTX Exchange has created a niche for itself although it is advised for users to use the online tool and learn more to make the best choice of any trading tool or exchange.