Share this article
FTX Faces US Justice Department Probe: Report
FTX already faced other state and federal investigations.
By Nikhilesh De
Updated Nov 10, 2022, 3:24 p.m. Published Nov 9, 2022, 11:53 p.m.
Make us preferred on Google
The U.S. Department of Justice is looking into crypto exchange FTX after its apparent collapse, the Wall Street Journal reported Wednesday.
FTX was already facing probes from state and federal regulators, but these investigations have taken on a new interest following revelations that the company had a liquidity issue. Fellow crypto exchange Binance briefly agreed to acquire the company, but walked away from the deal on Wednesday. Shortly thereafter, Bankman-Fried reportedly told investors that FTX needed $8 billion to continue operating or would risk having to file for bankruptcy protection.
STORY CONTINUES BELOW
State regulators were previously looking into FTX and whether it allowed U.S. customers to trade derivatives products without either FTX or FTX.US, its U.S. entity, registering with federal regulators.
The U.S. Securities and Exchange Commission and Commodity Futures Trading Commission are also investigating whether FTX had correctly handled its clients' funds, Bloomberg reported earlier Wednesday.
Binance announced Tuesday it would acquire FTX, but said Wednesday that it would not, citing concerns about FTX's books, which is an issue investigators may look into.
"The issues are beyond our control or ability to help," Binance said in a statement Wednesday. The statement also cited news reports about "mishandled customer funds and alleged US agency investigations" as reasons for pulling out of the deal.
Sam Bankman-Fried, FTX's founder and CEO, had also previously tweeted that his company "is fine," as were its assets. The assertion was undercut a day later when Bankman-Fried and Binance CEO Changpeng Zhao announced Binance had signed a non-binding letter of intent to acquire the company.
A Justice Department spokesperson declined to comment.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Crypto exchange WhiteBIT flagged by Russia as 'undesirable' over support for Ukraine military
WhiteBIT has actively supported Ukraine's war effort, donating $11 million to military initiatives and processing over $160 million in donations.
What to know:
- Russia banned Ukrainian crypto exchange WhiteBIT, making any interaction with the company a criminal offense within Russian borders.
- WhiteBIT has actively supported Ukraine's war effort, donating $11 million to military initiatives and processing over $160 million in donations.
- The exchange has continued to grow, expanding to 8 million users and entering the U.S. market despite Russian pressure.
Top Stories
