HomeCoinsEthereum (ETH)FTX faces SEC and CFTC investigation: Bloomberg

FTX faces SEC and CFTC investigation: Bloomberg

- Advertisement -


FTX faces SEC and CFTC investigation: Bloomberg

Crypto exchange FTX faces an investigation by the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) into its mismanagement of customer funds and the firm’s relationships with FTX.US and Alameda Research.

The investigation by the SEC and CFTC stems from the recent FTX liquidity crisis that has caused a massive contagion effect across the crypto markets.

The SEC first began looking into FTX US’s crypto lending activities and operations months ago, Bloomberg first reported, citing anonymous sources.

Now, the CTFC is getting involved with the SEC and investigating FTX in addition to FTX.US, looking into the relationships between the two exchanges and trading firm Alameda, Bloomberg reports.

The FTX liquidity crisis has raised a concern and a call for more regulation and oversight for which agency should oversee trading platforms like FTX.

The CTFC typically has only maintained oversight over derivatives in the crypto markets, but that may change if it believes fraud or manipulation is occurring. The SEC, on the other hand, oversees any token that is a security — another area that has lacked oversight and guidance and has raised concerns around Bitcoin and Ethereum’s status under the SEC’s Howie test. Regulators currently oversee crypto investment firms.

This past week, regulators requested details about the ownership structure of FTX.US and FTX. Both regulators are actively searching for any management or executive board overlaps. In addition, they are looking into any financial ties between the two separate exchanges, according to Bloomberg. 

This is not the first time either commissions have expressed concerns around cryptocurrencies. Gary Gensler, chair of the SEC, has voiced multiple warnings about crypto exchanges like FTX. His concerns center around security law violations with unregistered tokens offered to U.S. citizens that may classify as securities. Gensler has brought up other potential violations such as exchanges front-running customer transactions, loans and conflict of interest.

CFTC officials have discussed the mismanagement of customer funds in the past, citing cryptocurrencies as the top billing on its latest annual report on enforcement actions. 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.



Source link

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
462FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,580FollowersFollow
2,230SubscribersSubscribe

Most Popular

bitcoin
Bitcoin (BTC) $ 23,461.29
ethereum
Ethereum (ETH) $ 1,669.93
tether
Tether (USDT) $ 1.00
bitcoin-cash
Bitcoin Cash (BCH) $ 137.61
litecoin
Litecoin (LTC) $ 99.81
eos
EOS (EOS) $ 1.10
okb
OKB (OKB) $ 41.18
tezos
Tezos (XTZ) $ 1.14
leo-token
LEO Token (LEO) $ 3.38
cardano
Cardano (ADA) $ 0.4053
monero
Monero (XMR) $ 171.62
stellar
Stellar (XLM) $ 0.092816
chainlink
Chainlink (LINK) $ 7.30
huobi-token
Huobi (HT) $ 5.74
tron
TRON (TRX) $ 0.064143
usd-coin
USD Coin (USDC) $ 1.00
dash
Dash (DASH) $ 62.90
neo
NEO (NEO) $ 8.93
iota
IOTA (MIOTA) $ 0.236825
nem
NEM (XEM) $ 0.040561
zcash
Zcash (ZEC) $ 46.91
maker
Maker (MKR) $ 698.43
paxos-standard
Pax Dollar (USDP) $ 1.00
ethereum-classic
Ethereum Classic (ETC) $ 23.24
vechain
VeChain (VET) $ 0.024797
true-usd
TrueUSD (TUSD) $ 1.00
kucoin-shares
KuCoin (KCS) $ 8.75
waves
Waves (WAVES) $ 2.90