FTX and SBF are the talk of the crypto town. The exchange has been enjoying the limelight recently, but not for all positive reasons. It all began with the FTX-Binance drama, which ended up in a situation where Binance announced that it may fully acquire FTX.
FTX’s liquidity crunch has put the exchange in a tight spot. To elevate itself from the troubled waters, it sought the help of Binance. However, per the latest reports, Binance is likely to back out of the acquisition deal. Sources close to the knowledge of the situation reveal that this may be the case after reviewing the company’s financial commitments.
However, FTX appears to be attracting attention, as US financial regulators have launched an investigation into the exchange, according to Bloomberg.
US is looking into whether FTX properly handled customer funds
The regulators are launching an investigation to analyze whether the exchange handled the customer funds properly. As per the details from individuals familiar with the matter, regulators are also looking at FTX’s relationship with other branches of SBF’s ecosystem.
The probe will also look into the exchange’s connection with its US branch and Alameda Research. According to two sources, the SEC investigation into FTX US has been ongoing for several months. However, it was never publicly disclosed.
The troubled stance of SBF’s exchange has sent shock waves throughout the entire cryptocurrency realm. It also had a cascading effect as it possibly triggered a cryptocurrency market slump. Bitcoin and other major altcoins lost a chunk of gains due to the current uncertain environment.