Most of FTX Legal Team Depart as Exchange Collapses

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Source: AdobeStock/aleutie

An issue that contributes in a big way to major crypto exchanges Binancedecision not to acquire ftx It is that a significant part of the latter’s team went to the exit.

according To Semaphore, citing people familiar with the matter,

“Most of FTX’s legal and compliance staff leave on Tuesday evening, […] Barring a few executives who could answer the questions which now weighed heavily on the firm.”

Binance – Although sometimes Guilty Withholding information from regulators – Time and again, there has been a heavy emphasis on regulatory oversight and compliance in the public domain.

The move, by a part of the FTX team, at a time when the exchange is facing a liquidity crisis, regulatory scrutiny and possibly legal issues, would be enough for a company to acquire it and walk away from becoming involved in the possible future. . troubles

“The ecosystem will grow stronger as the regulatory framework evolves and as the industry moves towards greater decentralization,” Binance said. Told in a statement as it walked away from the FTX-acquisition deal.

US Securities and Exchange Commission ,seconds) has already been investigating FTX’s client funds and its crypto-lending activities for several months, Reuters informed ofCiting a source with knowledge of the investigation.

The report claimed that,

“The SEC is investigating whether the platform is complying with securities laws relating to segregation of client assets and trading against clients,” the source said.

The SEC is also looking at the relationship with FTX. FTX USReuters said, while Bloomberg informed of That Commodity Futures Trading Commission ,CFTC, And Justice Department ,two) are also investigating the exchange.

In a comment shared with cryptonews.comMarina Marczyk, Co-Founder European Crypto Initiative (EUCI) stated that,

“We believe that any industry downturn with such a ratio will not only affect the community, but it will also have a tremendous impact on the shaping of crypto regulation. It is good that the market (market) in crypto asset regulations (asbestos) was finalized before anything could happen, as it is highly likely that this would have affected the negotiation process and the final text of Micah. In a sense, we also feel that what happened serves as another validation for the existence of MICA – an argument we already see coming from those involved in the drafting process of regulation.”

ftx was Allegedly Just hours before it managed to get emergency funding from Binance, it asked for a bailout of over $1 billion from billionaires in Silicon Valley and Wall Street.

As is known so far, Binance had Agreed Before acquiring FTX on Tuesday this week exit the deal on Wednesday, citing wrongful client funding and regulatory scrutiny.

During this, according As for Bloomberg, Banksman-Fried is no longer a billionaire, as he lost an estimated $14.6 billion, which is about 94% of his net worth.

This week the FTX token, FTT has seen a huge drop. As of Tuesday morning (UTC time), it was trading at $2.83, down more than 35% in a day and about 89% in a week.

FTT 7-Day Price Chart:

Source: coinecko.com

At the time of writing, the parent company’s site of FTX Alameda Research is offline. FTX.com is working but displaying a warning against depositing because the exchange is unable to process withdrawals. The website of FTX US, which is a separate entity, is functional.

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learn more:
, Crypto Prices Crash as FTX Crypto Exchange Collapse – What We Know So Far
, Galaxy Digital’s $77M Exposure to FTX Comments on FTX, Temasek and Tether

, Binance to Provide Proof-of-Reserve After FTX Bust – Other Exchanges to Follow Suit?
, Crypto.com Exchange Suspends Withdrawals on Solana Blockchain as Crypto Price Crashes – Another Exchange in Trouble?



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