FTX owners crypto empire under investigation
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FTX owner’s crypto empire under investigation

US regulators will investigate possible misuse of customer funds on crypto exchange FTX, as well as the site’s relationship with other Sam Bankman-Fried (Sam Bankman-Fried) companies.

    Image source: Jonathan Borba / unsplash.com

Image source: Jonathan Borba / unsplash.com

The US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC) are interested in the liquidity crisis that has hit FTX, sources say Bloomberg. According to the agency, the SEC has been examining the American site FTX US for several months. FTX’s financial woes forced the company to turn to its competitor Binance, which however decided to win back its decision by taking a closer look at the company’s position. Regulators also want to investigate the platform’s relationship with its US version and Alameda Research, which is owned by the same owner.

The SEC and CFTC have requested detailed information about the ownership structure of FTX US and FTX.com – the authorities are interested in overlapping governance structures and mechanisms governing the financial relationships between the two organizations. The agencies also requested data on the breakdown of accounts between sites and on FTX.com’s investors.

The liquidity crisis on the platform has caused severe turmoil in the cryptocurrency market, with Solana shedding more than half of its value this week and Bitcoin falling below $16,000 for the first time in more than two years.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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