Two top financial regulators in the United States are investigating whether or not the cryptocurrency exchange FTX properly handled customer funds and its connections with other sections of Sam Bankman-Fried’s crypto empire.
Both the Securities and Exchange Commission and the Commodity Futures Trading Commission are conducting an investigation into the connection between FTX US and Alameda Research, Bankman-Fried’s trading firm.
This comes out just one day after the cryptocurrency exchange Binance said it would buy FTX. A spokesperson for the CFTC refused to comment on the matter.
Wednesday marked the second consecutive day that cryptocurrency prices fell by a significant amount. Investors are still worried about the security of the cryptocurrency industry and the financial health of FTX, even though a bigger rival company, Binance, plans to work on a rescue deal.