In the United States, Gary Gensler, the chairman of the SEC, is very suspicious of cryptos. He believes that the security risks are numerous and constantly warns users. He further said that crypto service platforms could violate securities laws by offering unregistered securities and/or granting loans, and promising that everything will be done to clean up the sector.
An investigation opened several months before this new scandal in crypto
As Sam Bankman-Fried and his companies find themselves embroiled in one of the most high-profile scandals in the crypto industry, Bloomberg released information on Wednesday that regulators are investigating the entrepreneur and his companies (FTX.com, FTX US and Alameda Research). The said regulators are the Securities and Exchanges Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The information comes from several sources close to the case, but who are not authorized to speak publicly on the case.
Investigation open for several months aims to verify whether FTX has mismanaged the assets of its customers. Regulators next want to know what FTX.com’s relationship is with other entities in Sam Bankman-Fried’s empire. In addition, they examine how the issue of loans is handled.
Be that as it may, the concerns of regulators follow the chain of bankruptcies and scandals in the crypto universe. Moreover, a large majority of stakeholders and civil society constantly call for regulation of the sector. While waiting for the legal framework, government agencies are exerting great pressure on companies, via reinforced policing.
“In recent days, regulators have requested details about the ownership structure of FTX US and FTX.com and their relationships with non-US clients (…) They are interested in any overlap between management and advisory structures, as well as the financial relations between the two entities. The agencies also asked for details about the segregation of client accounts and the composition of FTX.com’s investor base”the informants reported.
Does the fact that regulators have been focusing on this case for months mean they had doubts about the strength of SBF’s empire? The question remains. Our source asked the agencies, but they declined to comment.
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