FTX Theme Between US Department of Justice and Binance!

According to a person familiar with the matter, U.S. officials, including the Justice Department, are considering Binance. cryptocurrency exchange inquired about the two companies’ recent interactions with FTX as they discussed a potential bailout.

US and European Officials Discuss FTX with Binance

The person in question said it received requests from US financial regulators, in addition to regulators in Europe, who requested information on what Binance executives have learned about the inner workings of FTX this week.

A Binance spokesperson declined to comment on the talks. A Washington-based FTX official has yet to respond to a request for comment.

A person close to the conversations said that Binance, the world’s largest global crypto platform by volume, has been considering an urgent acquisition of FTX to save the firm from a billion-dollar liquidity crunch.

But Binance’s due diligence team quickly discovered dark contradictions regarding FTX’s relationship with Alameda Research, the trading firm founded by FTX CEO Sam Bankman-Fried. According to the person, the FTX client funds appeared to have been used for commercial purposes.

The company’s collapse was greeted with trepidation by both the industry and the government.

“It is critical that our financial watchdogs investigate what led to the collapse of FTX so we can fully understand the abuses and abuses that are occurring,” Senator Sherrod Brown said on Thursday.

Also this week, a senior attorney for FTX US instructed employees to retain work-related documents as another sign of potential legal risks to Bankman-Fried’s crypto empire.

Sources said Wednesday that FTX US General Counsel Ryne Miller instructed employees to retain emails, messages, notes and documents resulting from their work at FTX, FTX US, Alameda and affiliates.

*Not investment advice.