{"id":6144,"date":"2022-11-09T17:13:45","date_gmt":"2022-11-09T17:13:45","guid":{"rendered":"http:\/\/ci02afe9a6f00025f0"},"modified":"2022-11-09T17:13:45","modified_gmt":"2022-11-09T17:13:45","slug":"us-probes-ftx-handling-client-funds","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/legal\/us-probes-ftx-handling-client-funds","title":{"rendered":"US Investigating FTX Empire Over Handling Of Customer Funds: Report"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><ul>\n<li>SEC, CFTC reportedly probing FTX over handling of customers\u2019 funds.<\/li>\n<li>Investigations also relate to lending.<\/li>\n<li>SEC probe reportedly predates Binance\u2019s acquisition of FTX.<\/li>\n<\/ul>\n<p>U.S. financial regulators have apparently been actively following the carnage that\u2019s ensued in cryptocurrency markets over the past couple of days.<\/p>\n<p>According to a report by <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-11-09\/us-probes-ftx-empire-over-handling-of-client-funds-and-lending\" target=\"_blank\" rel=\"noopener\">Bloomberg<\/a>, people familiar with the matter said the Securities and Exchange Commission and the Commodity Futures Trading Commission are investigating the liquidity crunch at FTX that led to its non-U.S. operations being acquired by competitor Binance, the world\u2019s largest exchange, on Tuesday.<\/p>\n<p>What started as apparently a clash between crypto\u2019s two wealthiest founders quickly spiraled into a deal between them to save FTX from collapse. Binance CEO Changpeng Zhao announced his company would be offloading half a billion dollars worth of the rival\u2019s native token, FTT, which triggered a sharp selloff of the token and culminated in FTX\u2019s Sam Bankman-Fried being rescued out of a \u201cliquidity crunch.\u201d<\/p>\n<p>The regulatory agencies are probing FTX over how it handled customer funds, apparently a key component of the exchange\u2019s liquidity situation.<\/p>\n<p>Watchdogs also seemingly worry about how much of an impact the buyout will have on FTX\u2019s U.S. operations. According to a financial policy analyst at $15.8 billion Cowen, the deal could be treated as a matter of national security by American regulators. <\/p>\n<p>Regulators also seem to be keenly interested in learning more about the flow of funds between two of Sam Bankman-Fried\u2019s businesses, FTX and Alameda.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>US regulators are investigating whether Sam Bankman-Fried\u2019s FTX properly handled client funds following the exchange\u2019s liquidity crunch, Binance acquisition.<\/p>\n","protected":false},"author":2572,"featured_media":5189,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[826,1620,828,93,219,183],"class_list":["post-6144","post","type-post","status-publish","format-standard","has-post-thumbnail","category-legal","tag-binance","tag-cftc","tag-ftx","tag-news","tag-regulation","tag-sec"],"author_data":{"id":2572,"name":"Namcios","nicename":"namcios","avatar_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/12\/pfp-96x96.png"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/regulation-authority-crime.jpg","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/6144","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/2572"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=6144"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/6144\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/5189"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=6144"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=6144"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=6144"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}