US Department of Justice also takes care of FTX

Last Updated: 10 November 2022

The US Department of Justice is to investigate the collapse of crypto exchange FTX. The Wall Street Journal reports that.


The number of investigations into the US exchange is mounting. Federal regulators have set their sights on the exchange after liquidity problems were revealed.

Colleague Binance briefly thought about acquiring FTX, but is now walking away from the deal anyway. This leaves customers hanging between shore and ship. What will happen to their depostios?

Shortly after the news, Bankman-Fried told investors that they reportedly need $8 billion to continue operating. Otherwise, they would risk having to file for bankruptcy.

Now, it is announced that the US Department of Justice will also look into the case. What exactly they will do is not known. The Justice Department spokesperson also did not want to comment on an investigation by Coindesk.

More regulators

What is known is that regulators want to know whether US customers could trade in derivatives products, while neither FTX or the US entity FTX.US have both failed to register with federal regulators.

It was also revealed earlier that the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are keeping an eye on things. They are particularly curious to know whether FTX handled its customers’ funds correctly.

Sam Bankman-Fried, FTX’s founder and CEO, tweeted earlier this week that his company was “fine” and that all assets were safe. The tweet has since been deleted and the opposite seems to be the case.

  • Gabriele Spapperi

    Gabriele Spapperi is a veteran cryptocurrency investor and blockchain technology specialist. He became fascinated with Bitcoin and distributed ledgers while studying computer science at MIT in 2011.

    Since 2013, Gabriele has actively traded major cryptocurrencies and identified early-stage projects to invest in. He contributes articles to leading fintech publications sharing his insights on blockchain technology, crypto markets, and trading strategies.

    With over a decade of experience in the crypto space, Gabriele provides reliable insights and analysis on the latest developments in digital assets and blockchain platforms. When he's not analyzing crypto markets, Gabriele enjoys travel, golf, and fine wine. He currently resides in Austin, Texas.

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