Department of Justice (DoJ) Supports SEC in FTX Investigation: WSJ

SEC in Communication With DoJ in the FTX Case
Failure of Cryptocurrency

The Department of Justice (DoJ) and the Securities and Exchange Commission (SEC) are collaborating on an investigation into the business run by FTX in the U.S., according to a story in The Wall Street Journal that cited an anonymous individual with knowledge of the situation.

SEC in Communication With DoJ in the FTX Case

FTX has attracted the attention of several regulators as it now potentially faces insolvency. According to the publication, the SEC is in regular communication with the DoJ as its months-long investigation to determine whether the assets on FTX.us may be regarded as securities continue to grow. It would be possible for FTX to have broken American exchange regulations if the SEC finds the disputed assets to be securities.

Additionally, regulators are focusing on FTX.us' links to trading business Alameda Research and the connection between it and its Caribbean parent company.

Failure of Cryptocurrency

Even before FTX's difficulties this week, there was mounting pressure on American authorities to get cryptocurrency companies to abide by investor protection regulations. Over the past year, the market valuation of cryptocurrencies has decreased by over $2 trillion due to the failure of several token producers, lending platforms, and financial assets.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Cryptocurrency Securities and Exchange Commission (SEC) FTX Department of Justice (DoJ) Wall Street Journal

Department of Justice (DoJ) Supports SEC in FTX Investigation: WSJ

Gungun Bhatia

Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.