As per an emerging report from the Wall Street Journal, the U.S. Department of Justice is investigating the crisis that has befallen FTX US after reports indicated that the firm had liquidity issues.
On top of that, the Securities and Exchange Commission (SEC), alongside the Commodity Futures Trading Commission (CFTC), is looking into the management of FTX customers’ investments, as there were allegations against FTX regarding the mismanagement of investors’ funds.
In the past, state regulators have investigated whether FTX offered derivatives to customers in the U.S. through FTX or FTX.US. Notably, FTX.US is their cryptocurrency exchange subsidiary in the U.S and is registered with regulators at the federal level.
On Wednesday, FTX CEO Sam Bankman-Fried reportedly told investors that the crypto exchange needs $8 billion to continue operations and avoid bankruptcy. This came to light a few moments after Binance Read more…
