SEC was already investigating FTX before the collapse, sources point out

Bloomberg sources point out that both the SEC and the CFTC were already investigating FTX even before its collapse, which happened Tuesday (8) after the founder confirmed the brokerage’s insolvency.

The alleged investigation sought to gain insight into the relationship between FTX.com, which was having money problems, and FTX.us, a brokerage that only serves Americans. Going further, even Alameda Research, another run by Sam Bankman-Fried.

Even with the advance of US agencies, the world of cryptocurrencies is operating at an unmatched pace. After all, the rumors about FTX were confirmed in one week and the market toppled one of the biggest behemoths in the industry.

SEC and CFTC have been following FTX for months, but without results

The US Securities and Exchange Commission (SEC) investigation into FTX reportedly began months ago, focusing on cryptocurrency lending services offered by FTX US, a regulated US brokerage.

Reportedly, the Commodity Futures Trading Commission (CFTC) later joined the SEC, to gain insight into the relationship between FTX.us and FTX.com, the latter based in the Bahamas and not serving Americans.

Another linked to the investigation is Alameda Research, a company owned by Sam Bankman-Fried, which has been identified as the cause of this crisis. After all, the money largely consisted of the FTT token, issued by FTX itself.

But even with months of advantage, the US agencies were unable to rescue investors. The insolvency rumors proved true within days as customers rushed to withdraw their funds.

It now remains to know what the position of the American justice system will be with regard to what happened. In any case, SBF has already stated that FTX.us is not linked to the failure of global FTX, perhaps in an attempt to alleviate their situation.

FTX Crash Draws Regulators’ Attention

Until then, offshore brokers dominate the cryptocurrency market by being able to offer their clients lower fees and other benefits. However, the FTX fiasco should open a new chapter in the history of this burgeoning industry.

Changpeng Zhao, founder of Binance, has already admitted that investors are losing faith in the industry. Going further, it also stated that regulators will attack Binance like never before.

So your attempt to save the FTX may be an attempt to save yourself. After all, much of his fortune is in BNB, an asset that relies heavily on the success of his brokerage, which may be in trouble.