After the liquidity crisis caused one of the largest exchanges FTX to stop depositing and withdrawing customers. Currently, two law enforcement agencies SEC and DOJ are also involved in investigating violations as well as transparency of the exchange.
According to The Wall Street Journal, the US Securities and Exchange Commission (SEC) and the US Department of Justice are investigating FTX citing people familiar with the matter and staff from the two law enforcement agencies maintained close contact on Wednesday.
The Department of Justice prosecutes criminal offenses such as fraud, while the SEC enforces civil investor protection laws. In addition, state regulators investigated FTX and whether FTX.US provided derivatives trading services to US customers without registering with federal regulators.
Additionally, SEC Chairman Gary Gensler said the FTX crash is part of a broader trend in crypto assets, The Block reported, noting issues like leverage, lack of disclosure, dubious, embezzlement of other people’s funds and future transactions.
As updated in an earlier Coincu News article, Binance decided to forgo the acquisition of FTX after realizing the risks of financial vulnerability as well as the possibilities of when this exchange is subject to a US investigation.
SBF has told investors that the company faces a funding gap of up to $8 billion and will file for bankruptcy if no new funds are poured in.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
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FTX Under Investigation By SEC And DOJ
After the liquidity crisis caused one of the largest exchanges FTX to stop depositing and withdrawing customers. Currently, two law enforcement agencies SEC and DOJ are also involved in investigating violations as well as transparency of the exchange.
According to The Wall Street Journal, the US Securities and Exchange Commission (SEC) and the US Department of Justice are investigating FTX citing people familiar with the matter and staff from the two law enforcement agencies maintained close contact on Wednesday.
The Department of Justice prosecutes criminal offenses such as fraud, while the SEC enforces civil investor protection laws. In addition, state regulators investigated FTX and whether FTX.US provided derivatives trading services to US customers without registering with federal regulators.
Additionally, SEC Chairman Gary Gensler said the FTX crash is part of a broader trend in crypto assets, The Block reported, noting issues like leverage, lack of disclosure, dubious, embezzlement of other people’s funds and future transactions.
As updated in an earlier Coincu News article, Binance decided to forgo the acquisition of FTX after realizing the risks of financial vulnerability as well as the possibilities of when this exchange is subject to a US investigation.
SBF has told investors that the company faces a funding gap of up to $8 billion and will file for bankruptcy if no new funds are poured in.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
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