- Advertisement -
the fall of ftx is already attracting the attention of US regulators, who are now reportedly looking into whether the firm misappropriated client funds. The investigation is underway as people in the community begin to wonder where CEO Sam Bankman-Fried is.
Citing two people “familiar with the matter,” a new Bloomberg report good said regulators are already seeking details about the ownership structure of FTX’s US arm, FTX US, and international trading site FTX.com.
Regulators are reportedly interested in any overlap in management or board members between the two companies, which were described by FTX as two separate and separate entities.
According to Bloomberg sources, regulators have sought details about how customer accounts were managed by the two entities under the FTX brand and whether user accounts were properly segregated. In particular, it comes in addition to a closer scrutiny of the relationship between FTX and Bankman-Fried’s now-infamous trading firm Alameda Research.
Meanwhile, the exact whereabouts of Sam Bankman-Fried are unclear, although it is reported that he lives in the Bahamas where FTX’s global headquarters are located. Nevertheless, just days before FTX stopped processing customer withdrawal requests, the exchange’s official Twitter account posted a now-deleted video showing footage from the company’s new office in Miami, Florida.
In other words, whether Banksman-Fried is currently in Florida, the Bahamas, or elsewhere is unclear at this point.
Regulators have repeatedly warned about crypto firms
The investigation into FTX’s transactions is reportedly led by the Securities and Exchange Commission (SEC) and the derivatives-focused Commodity Futures Trading Commission (CFTC).
In the past, SEC Chairman Gary Gensler has warned about crypto risks, and especially those related to crypto exchanges. He has also indicated that there may be some exchanges. in violation of securities laws By offering tokens deemed to be unregistered securities to US retail customers.
Perhaps the harshest warning ever from Gensler came during a hearing on the US Senate Committee on Banking, Housing and Urban Affairs, where Gensler used harsh words to attack the crypto industry,
“Frankly, at this time, [crypto is] Like the old world of the Wild West or ‘buyer beware’ that existed before the securities law came into force. This asset class is fraught with fraud, scams and misuse in some applications.”
Bitcoin Crypto Related Post