SEC Expands FTX Investigation! Now Searching For Bitcoin Companies Investing In FTX!

filed for bankruptcy in November 2022 cryptocurrency Investigations into the collapse of the stock market FTX continue.

FTXAs investigations continue into its founder, SBF, and its executives US Securities and Exchange Commission (SEC) He wants to know more about the status of FTX.

According to Reuters, the SEC is asking investors for details on due diligence regarding the bankrupt FTX.

In this regard, while the SEC is investigating what procedures investors follow when investing in FTX, crypto- asks their companies what due diligence policies and procedures they have and whether they follow them when choosing to invest in FTX.

As a result of its investigations, the SEC determined that the Bahamas-based crypto exchange has raised more than $1.8 billion from equity investors, including 90 US-based investors, since May 2019.

The SEC is now asking companies it has determined to invest in FTX about their investment procedures and reasons.

Sources briefing Reuters on the matter said firms identified as investing in FTX are likely to face regulatory scrutiny, even if they are not currently under investigation, but are seen as victims of SBF’s plot.

In this context, sources stated that FTX investor companies may also be subject to scrutiny whether they fulfill their trust-based duties towards their own investors.

FTX, once considered one of the key players in the crypto industry, collapsed in less than two weeks due to a liquidity crunch. FTX filed for bankruptcy in November.

After filing for bankruptcy SEC, US Department of Justice and CFTCfounder and former CEO of FTX Sam Bankman-Fried He was charged with 8 different financial crimes, including fraud. However, the SBF denied all charges at its hearing on Tuesday.

But two of SBF’s closest partners, Caroline Ellison, former CEO of Alameda, and Gary Wang, former chief technology officer of FTX, have admitted to fraud charges against them.