SEC and DOJ join forces to probe FTX’s collapse

Sahana Kiran
Source – CryptoSlate

This entire week has been nothing short of chaotic. The whole FTX-Binance drama paved the way to the downfall of the market. While the crypto market continues to remain volatile, FTX was seen inviting bigger trouble. The crypto exchange was now on the U.S. Department of Justice [DOJ] as well as the Securities and Commission’s [SEC] radar.

Earlier today, it was brought to light that officials from the Justice Department are working with the Securities and Exchange Commission were working together to investigate the ordeal.

It should be noted that this wasn’t the first probe that had struck the exchange. Earlier, state officials investigated the exchange to see if it let American consumers trade derivatives assets without FTX or FTX.US signing up with federal authorities.

In addition to this, the SEC along with the Commodity Futures Trading Commission [CFTC] were examining FTX to check if it handled customer funds in the right manner.

This time, however, it was due to the looming liquidity issue. While Binance agreed to pull Sam Bankman-Fried’s exchange out of misery, it decided to steer away from the acquisition deal. Binance stated,

“In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help.”

FTX and Alameda websites go down

Amidst all of this, both the websites tied to SBF’s exchange seemed to be taken down. wrote a note that it had suspended the onboarding of new clients. It should be noted that the exchange paused withdrawals a couple of days ago.

Alameda Research, on the other hand, was made private on Tuesday.

In the meantime, the FTT token plummeted to a low of $2.06 earlier today. At press time, however, the asset was trading for $2.36 with a 55.24 percent daily drop.