{"id":69845,"date":"2022-11-10T10:33:14","date_gmt":"2022-11-10T08:33:14","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=69845"},"modified":"2025-09-07T22:25:27","modified_gmt":"2025-09-07T19:25:27","slug":"us-regulators-investigations-into-ftx-come-to-light","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/us-regulators-investigations-into-ftx-come-to-light\/","title":{"rendered":"US regulators&#8217; investigations into FTX come to light"},"content":{"rendered":"<p><span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> and <span data-descr=\"U.S. Commodity Futures Trading Commission\" class=\"old_tooltip\">CFTC<\/span> have begun examining the links between FTX and its U.S. subsidiary and Alameda Research. <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-11-09\/us-probes-ftx-empire-over-handling-of-client-funds-and-lending\">Bloomberg<\/a> reports, citing people familiar with the matter.<\/p>\n<p>The U.S. Department of Justice has also <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-11-10\/us-justice-department-looking-into-ftx-turmoil-amid-sec-probe\">taken up<\/a> examining the platform&#8217;s activities, according to other informed sources.<\/p>\n<p>Regulators are interested in the extent to which client funds were involved in the exchange&#8217;s business operations, the composition of the investor base, and the degree of account segregation.<\/p>\n<p>Also under scrutiny are the ownership structures of the legal entities, their financial relationships, and the overlap between management and the board among individuals.<\/p>\n<p>The agency cautioned that investigations do not necessarily lead to charges.<\/p>\n<p>The CFTC inquiries relate to the liquidity crisis that <a href=\"https:\/\/u1f987.com\/en\/news\/binance-chief-changpeng-zhao-announces-purchase-of-ftx\">to seek support from Binance<\/a>. The SEC began its investigation several months ago into the lending activities of its U.S. subsidiary.<\/p>\n<p>The journalists noted that the CFTC has limited powers over crypto-market participants. The agency could take enforcement action if violations involve fraud or manipulation. The SEC may be interested in indicators of securities-law violations.<\/p>\n<p>On November 6, Binance CEO Changpeng Zhao <a href=\"https:\/\/u1f987.com\/en\/news\/alameda-research-says-it-would-buy-ftt-from-binance-at-22-per-token\">announced<\/a> his aim to divest the exchange&#8217;s utility token FTX (FTT). The assets, together with BUSD, totaling about $2.1 billion, were the result of the company&#8217;s exit from its portfolio investment in the platform.<\/p>\n<p>In light of concerns about FTX&#8217;s financial health, the price of the exchange&#8217;s FTT <a href=\"https:\/\/u1f987.com\/en\/news\/ftx-token-falls-nearly-30\">collapsed<\/a>.<\/p>\n<p>On November 8, Sam Bankman-Fried and Zhao <a href=\"https:\/\/u1f987.com\/en\/news\/binance-chief-changpeng-zhao-announces-purchase-of-ftx\">announced<\/a> a strategic partnership. It was intended to resolve the liquidity crisis and envisaged a possible acquisition of FTX.<\/p>\n<p>On November 9, it emerged that Binance <a href=\"https:\/\/u1f987.com\/en\/news\/binance-abandons-bid-for-ftx-justin-sun-says-he-will-help-find-a-solution\">refused to acquire the troubled competitor<\/a>.<\/p>\n<p>As Coin Metrics noted, a possible cause of FTX&#8217;s collapse could have been <a href=\"https:\/\/u1f987.com\/en\/news\/coin-metrics-identifies-possible-cause-of-ftx-crisis\">\u201ca large financial aid\u201d<\/a> that the company provided to Alameda Research in the second quarter of 2022.<\/p>\n<p>Read ForkLog&#8217;s bitcoin news on our <a href=\"\/\/telegram.me\/forklog\u201d\" target=\"\u201c_blank\u201d\" rel=\"\u201cnofollow\u201d noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>SEC and CFTC have begun examining the connections between FTX and its U.S. subsidiary and Alameda Research, Bloomberg reports, citing people familiar with the matter.<\/p>\n","protected":false},"author":1,"featured_media":69846,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[879,1236,128],"class_list":["post-69845","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cftc","tag-ftx","tag-sec"],"aioseo_notices":[],"amp_enabled":true,"views":"35","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69845","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=69845"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69845\/revisions"}],"predecessor-version":[{"id":69847,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69845\/revisions\/69847"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/69846"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=69845"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=69845"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=69845"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}