SEC launches probe against FTX`s Sam Bankman-Fried

SEC-launches-probe-against-FTX`s-Sam-Bankman-Fried
  • An investigation into the FTX exchange was launched on 10th November.
  • Sam Bankman-Fried would also be investigated.
  • Workers of the US-based platform FTX.US were attempting to list assets.

The troubled firm, FTX,  informed US federal officials that withdrawals would be suspended. Just yesterday though, it was announced that an investigation into the exchange had been launched. This was specifically done by the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ).

Sam Bankman-Fried, the CEO and creator of FTX, would be under investigation by the SEC, it was revealed earlier today.

This year, the cryptocurrency sector has seen a number of initiatives fail. The presence of FTX, a well-known exchange, on the list was not something the crypto community expected. Nothing except pandemonium in the market resulted from the exchange’s collapse.

This allegedly occurred as a result of the investigation that the SEC, DOJ, and Commodity Futures Trading Commission [CFTC] just opened. These organizations investigated whether the administration of the exchange was mismanaging consumer funds.

Alameda Research was examined in addition to FTX. It should be recalled that earlier this year, SBF reportedly moved $4 billion from FTX to Alameda. This may be one of the causes for why the platform was included in all the inquiries.

According to a recent Bloomberg article, workers of the US-based platform FTX.US were attempting to list assets and even some of the company’s stock for sale.

The staff members were advocating Embed, a stock-clearing platform that FTX had previously purchased in June 2022. According to reports, SBF was allegedly not informed of this.

Users were alarmed by the most recent report, despite SBF’s continued assurances that the cash in the company’s US division was secure.

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Godfrey Mwirigi is an enthusiastic crypto writer with an interest in Bitcoin, blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience in their day-to-day endeavors.

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