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.

Investigation

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.

Author

  • I first came into contact with Bitcoin in 2017 - and since then, the topic of cryptocurrencies has never left me. For this reason, I have also made BTC & Co. part of my profession and write as a freelance author for crypto publications.

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