Officials at the Commodity Futures Trading Commission and the Securities and Exchange Commission are investigating crypto exchange FTX, according to a Bloomberg report.
The inquiry is focused on the handling of client funds amid FTX's liquidity problems and subsequent collapse, as well as the relationship between FTX and American affiliate FTX.US. Bloomberg reports that the SEC probe into the FTX.US relationship predates this week's events, citing two sources who declined to speak on the record due to the sensitivity of the matter,
News yesterday that FTX had struck an agreement for a possible acquisition by Binance stunned the crypto industry and stirred further volatility in an already gyrating digital asset market. Bitcoin is trading at $17,050 as of 11:57 p.m. ET, according to TradingView data.
It's unclear at this time whether the deal will go through, however. Reports from Bloomberg and CoinDesk indicate that Binance may pull out because of a potential multi-billion dollar financial hole.
In a development that could have implications for the probes, Semafor reported that "most of" FTX's compliance and legal teams departed the exchange Tuesday night. The outlet cited unnamed sources with knowledge of the situation.
Editor's Note: Updated with breaking details from Semafor.
© 2023 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.