The investigation into FTX: gray areas and twists

The SEC and CFTC have been engaged in a long-running investigation since FTX collapsed last November. They are still trying to figure out what really happened in order to prevent it from happening again with other crypto entities. SBF, former CEO of FTX, has been indicted by US prosecutors for the spectacular bankruptcy of the exchange. But there are still many gray areas in this case. That said, the Federal Bureau of Investigation (FBI) has decided to take steps to solve the case as well.

FBI raids home of former FTX executive

The FTX case continues after news of LedgerX’s recent takeover by M7 Holding. The New York Times reported that the FBI raided the home of a former FTX executive named Ryan Salame. The search took place on Thursday around 7 a.m. in Potomac, Maryland. The exact nature of the search remains unknown. However, it seems obvious that the latter is part of the investigation into the bankruptcy of FTX.

It should be noted that Salame was co-CEO of FTX Digital Markets until December 2022. The latter constitutes the exchange’s subsidiary in the Bahamas. Salame also worked for Alameda Research, FTX’s sister company.

The latest news on the failed exchange case

Recently, cooperation agreements have been made by a group of FTX insiders. At the same time, the FTX case is heading for a formal trial. Meanwhile, NBA star Shaquille O’Neal has been subpoenaed in the scandalous case. This is due to the fact that Shaquille had promoted the crypto platform.

Moreover, to limit the damage after the collapse of FTX, one of the four subsidiaries of the exchange was recently sold. This is the digital currency futures and options platform LedgerX. The subsidiary is now owned by M7 Holding for an amount of 50 million dollars.

Admittedly, the FTX case has not yet been resolved. But, rumors are circulating that we could soon witness the rebirth of the exchange. In this context, a player recently reacted to indicate that it would be very difficult for FTX to regain its momentum. Indeed, Anthony Scaramucci of investment firm Skybridge said:I don’t see how it is possible to restart FTX… Not much money is being made in these exchanges at the moment, and therefore many of these exchanges are in the red“.

Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of newsletter daily and weekly so you don’t miss any of the essential!

Similar Posts