Judicial machine – US authorities are reportedly investigating FTX following the loss of client funds. They reportedly even became interested in cryptocurrency trading, long before the carnage began.
FTX foreign exchange transactions scrutinized by US regulation
According to a Nov. 21 Bloomberg article, the District Attorney’s Office for the Southern District of New York investigated FTX, long before the cryptocurrency exchange collapsed. For several months, authorities have reportedly scoured crypto platforms with branches in the United States and abroad.
The Prosecution would then have started the analysis of FTX’s foreign exchange transactions. The investigations would have focused above all on verifying compliance with art banking secrecy lawwhich legally obliges financial institutions to put in place the necessary arrangements for fight against money laundering and the financing of terrorism.
>> For your cryptocurrency purchases, register on the AscendEX platform, 10,000 bitcoin SAT offered (commercial link) <
FTX in the crosshairs of regulation?
Authorities targeted crypto platforms, which falsely claimed they did not offer their services to customers in the United States. However, there is no information as to whether the investigations they were or were not conclusivebefore FTX collapsed.
Following the fall of the crypto exchange, the federal investigation would have taken a new direction. Prosecutors and regulators, including the SEC and CFTC, are reportedly seeking the support of new FTX CEO John Ray III in their investigations.
Citing former prosecutors, the Bloomberg article points out that authorities will need to determine whether FTX he had cheated their customers about how their assets would be held. Investigators will need to be able to demonstrate that someone within the company acted for their own benefit, using a channel such as telephone or email, in order to prove the existence of electronic fraud.
Thanks to FTX’s bankruptcy, prosecutors will be able to access the file existing documents related to the company and select those who can sue. Anand Sithian, a former federal prosecutor who works at Crowell & Moring, said investigators will look for the witness statements and the communication between employees through different channels – email, Slack, etc..
John Ray III had exposed FTX’s questionable practices when he told the bankruptcy court, l“complete absence of reliable financial information” and the existence of more than $1 billion in loans, which have been made to Sam Bankman-Fried and other cryptocurrency executives from Alameda Research. The software was also allegedly used to hide the use of client funds. Despite these revelations, to date the authorities have not charged anyone with wrongdoing.
Does the volatility of the cryptocurrency markets scare you? Want to go back to the roots of the blockchain? Join AscendEX, because by carrying out very simple daily activities, you will receive satoshis from bitcoin mining directly to your wallet. And to get you off to a good start, get free satoshis as a signup bonus thanks to our link (commercial link).