SEC, CFTC Target FTX after Binance Hints on Acquisition: Report
Main page News, US, Cryptocurrency Exchanges, FTX, Regulations

US financial regulators are targeting cryptocurrency exchange FTX after Binance announced plans to acquire it to handle a "significant liquidity crunch."

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According to a report from Bloomberg, the US Securities and Exchange Commission (SEC) alongside the Commodity Futures Trading Commission (CFTC) are investigating FTX's relationships with Alameda Research, a trading firm also founded by the exchange's head Sam Bankman-Fried.

Bloomberg's sources close to the matter noted that the SEC also initiated a probe against FTX US a few months ago over its crypto-lending activities.

Binance Set to Acquire FTX Amid Liquidity Issues

In October, iHodl reported that the Texas State Securities Board was also investigating FTX US over alleged violations of state law by offering unregistered securities through its yield-bearing service.

The agency said in a court filing that FTX US "may not be fully disclosing all known material facts" to investors, thereby "possibly engaging in fraud." The regulator believes that certain principles of FTX US may also be violating disclosure requirements.

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