FTX under close scrutiny by agencies

The Securities and Exchange Commission and the Commodity Futures Trading Commission launched investigations into the collapse of the crypto exchange platform FTX last week after a rush of customer withdrawals.

FTX failed in an attempt to secure a deal with rivals, and now Binance is being investigated and declared bankrupt by US regulators over its handling of customer funds and its cryptocredit business. All things being equal, FTX has fallen from grace to grass.

Although Bitcoin and other cryptocurrencies were under pressure on Monday following the spectacular collapse of the FTX cryptocurrency exchange last week, rival exchanges were trying to convince investors of their own stability.

According to one source, the SEC investigation is also targeting FTX executives, their knowledge of how to handle client funds and possible violations of securities laws.

The Securities and Exchange Commission and the Commodity Futures Trading Commission are also investigating the problems that led to the current liquidity crisis at FTX and the relationship between, its trading house Alameda Research and FTX US.

The sources for this piece include an article in Reuters.

IT World Canada Staff
IT World Canada Staff
The online resource for Canadian Information Technology professionals.

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