Will FTX collapse be a reason for tightening regulatory scrutiny of cryptocurrencies?

The U.S. Securities and Exchange Commission (SEC) and other regulators may see the collapse of FTX as justification for tightening regulatory scrutiny of cryptocurrencies, and Congress may be more inclined to step in and create new laws governing digital tokens and exchanges. 21

What went wrong with FTX?

Learn more about what went wrong with FTX. FTX collapsed in early November 2022 following a report by CoinDesk highlighting potential leverage and solvency concerns involving FTX-affiliated trading firm Alameda Research. FTX’s collapse shook the volatile crypto market, which lost billions at the time, falling below a $1 trillion valuation.

Did FTX violate securities laws?

Nov. 14 – The collapse of cryptocurrency exchange FTX became the subject of an investigation by federal prosecutors in New York, sources familiar with the matter told ABC News. At issue, the sources said, is whether FTX violated securities laws when it reportedly gave customer funds to Alameda Research.

Did FTX get a bailout from Binance?

Things went downhill for FTX after Binance, the world’s largest cryptocurrency exchange, reversed on a deal to save the company. FTX appeared set for a bailout from Binance, but then the deal fell apart. Michael M. Santiago/Getty Images Kalley Huang is a technology reporter based in San Francisco.