Crypto Exchange FTX In Talks With Regulators, As Bankruptcy Proceedings Begin - thebestdealindia

Crypto Exchange FTX In Talks With Regulators, As Bankruptcy Proceedings Begin


Crypto Exchange FTX In Talks With Regulators, As Bankruptcy Proceedings Begin

FTX filed for bankruptcy protection on Friday in one of the highest-profile crypto blow-ups.

Collapsed crypto exchange FTX said in a court filing that it was in contact with financial regulators, and had appointed five new independent directors at each of its main companies, including Alameda research.

FTX also confirmed that it had responded to a cyber attack on Nov. 11, after saying on Saturday it had seen “unauthorized transactions on its platform.

The implosion of FTX, once a darling of the crypto industry with a $32 billion valuation as of January, has spurred investigations by the U.S. Justice Department, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), a source with knowledge of the investigations told Reuters.

In a court filing on late Monday, FTX said it has been in contact with the U.S. Attorney’s Office, SEC, CFTC, and dozens of federal, state and international regulatory agencies over the past 72 hours.

FTX has appointed five independent directors to ensure proper corporate governance during its bankruptcy, lawyers for the company said in the filing. Former U.S. District Court Judge Joseph Farnan and Matthew Doheny will oversee FTX Trading.

Mitchell Sonkin was appointed as a director at West Realm Shires, Matthew Rosenberg at Alameda Research and Rishi Jain at Clifton Bay Investments, according to the filing.

FTX filed for bankruptcy protection on Friday in one of the highest-profile crypto blow-ups after frenzied traders withdrew $6 billion from the platform in just 72 hours and rival exchange Binance abandoned a rescue deal.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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