US regulators have decided to strengthen the surveillance of cryptocurrencies on the FTX US crypto exchange. They also decided to investigate the company of Sam Bankman-Fried because according to some reports, the boss of FTX would have allowed himself some largesse…
Sam Bankman-Fried and his company FTX US are in the sights of the SEC and the CFTC
The authorities in charge of regulating the cryptocurrency sector have further strengthened their surveillance of the crypto market. This new tightening of surveillance follows a report which indicates that the American branch of the FTX exchange may have violated securities laws.
As such, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will investigate this company as well as other companies that are targeted by the report.
In effect, the crypto trading platform FTX and particularly its American branch FTX US is targeted by an investigation by the authorities of Texas. Thus, if the company is under investigation, it means that its founder is also in the crosshairs of the Texas authorities.
Therefore, by carrying out their investigations, the investigators will be able to verify whether the performance accounts offered by the company FTX are registered or unregistered securities.
Separately, the FTX spokesperson tried to reassure investors that for some time now the company has been in constant communication with regulators. The goal is to be as transparent as possible about the activities of the FTX crypto exchange.
Other cryptocurrency exchanges are also in the sights of regulators
It’s not just Sam Bankman-Fried and FTX that are targeted by regulators. Indeed, several other crypto exchanges are also under rigorous scrutiny and investigation for potential violations of US securities laws.
Among those companies that are under scrutiny are 3AC, BlockFi, Celsius and Voyager Digital. Regarding Voyager Digital, this crypto exchange had declared bankruptcy when it filed for bankruptcy last July. Then it was bought out by Sam Bankman-Fried.
According to documents filed during the bankruptcy proceedings, the company Alameda Research owes 377 million USD to Voyager Digital.
However, Alameda Research was founded by the owner of FTX, Sam Bankman-Fried. There is therefore a vagueness that hangs over this declaration of bankruptcy of the Canadian stock exchange Voyager Digital as well as its acquisition by Sam Bankman-Fried for 1.4 billion USD.
On the other hand, there are also gray areas in the fact that the FTX exchange had offered a line of credit worth US$500 million with the Voyager Digital exchange last June.
It was only a month after Voyager Digital filed its reports with the court for the Eastern District of New York to declare bankruptcy. A bankruptcy that would be caused by the collapse of the Terra project as well only bear market in the cryptocurrency market.