SEC Investigating Binance and Coinbase after FTX Implosion: WSJ

Nov 14,2022
SEC Investigating Binance and Coinbase after FTX Implosion: WSJ

According to the Wall Street Journal, in addition to investigating Coinbase Global and Binance, the SEC also investigated the FTX service platform.

According to an insider, after its sudden collapse this week, the US Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) have investigated the data encryption transaction FTX.

Insiders said that the relevant staff of the two law enforcement agencies had a deeper contact on Wednesday. At the same time that the SEC implemented the rules of civil litigation investor protection, the Ministry of Justice filed a lawsuit against illegal crimes including fraud.

The ongoing SEC investigation has been going on for several months, and the investigation object is FTX US, a branch of the enterprise in the United States.

According to a senior official of the U.S. Securities and Exchange Commission, some properties listed on the website and FTX's loan products may be securities. According to U.S. laws and regulations, before selling to investors, they need to apply for registration with the SEC.

If so, the enterprise's approach to customer asset management may also violate the regulatory provisions of the US Exchange.

Gary Gensler, the current chairman of the Securities and Exchange Commission of the United States, often stipulates that trading service platforms such as FTX apply to this institution for registration, follow the same laws and regulations governing traditional stock exchanges, and at the same time vow to conduct inspections.

Binance withdraws from FTX acquisition transaction

After checking the operation of the company, Binance has withdrawn from the FTX acquisition transaction.

Binance said on the official website's tweet page: "I decided not to continue to purchase FTX because of the enterprise engagement investigation, the negligence of related customer assets and the latest news reports of the investigation and accusation of American organizations.".

With Justin Sun, founder of Tron, saying that he is working with FTX to develop solutions, another expectation has come. She wrote on Twitter, "We will do our best to maintain our own customers, including exchanging all TRX, BTT, JST, SUN and HT on FTX software in 1:1 ratio."