US regulators are investigating Sam Bankman-Fried and FTX.com for potential violation of rules following the crypto exchange’s sudden collapse, which marks yet another crisis of confidence for the cryptocurrency industry.
(Bloomberg) — US regulators are investigating Sam Bankman-Fried and FTX.com for potential violation of rules following the crypto exchange’s sudden collapse, which marks yet another crisis of confidence for the cryptocurrency industry.
Bankman-Fried was also interviewed by Bahamian police and regulators on Saturday, a person familiar with the matter told Bloomberg, as the authorities in the country investigate whether there was any criminal misconduct in FTX’s collapse. The firm is registered in the Bahamas.
Senate Banking Committee Chairman Sherrod Brown pushed for federal watchdogs’ investigation into FTX, while Massachusetts Democrat Elizabeth Warren urged more aggressive enforcement of rules for the crypto industry.
But with both chambers of Congress likely to be almost evenly split following the Midterm elections, the path forward for stronger crypto regulations remains murky.
CHARTING CRYPTO
WEEKLY ROUNDUP FROM WASHINGTON
- Retiring Senate Republican Pat Toomey said FTX’s collapse underscores the need for a “sensible regulatory regime” and called on lawmakers to find common ground during the lame-duck session of Congress on stablecoins regulation
- Kristin Johnson, one of the Commodity Futures Trading Commission’s commissioners, also said FTX.com’s collapse demonstrated the need for more regulation
- A banking-industry group called on US officials to prohibit crypto firms from getting access to Federal Reserve accounts to ward off the risk of a crypto industry crisis threatening broader financial stability.
- Manhattan prosecutors said they seized almost $3.4 billion in Bitcoin from a property developer that scammed the dark web marketplace Silk Road more than a decade ago
- US Treasury Department imposed sanctions on a drug trafficking network funded through cryptocurrencies.
- The network allegedly supplied fentanyl and other synthetic drugs to buyers through the Internet
- FTX.com’s collapse may wipe out two major US political donors in Sam Bankman-Fried and Ryan Salame
- US Internal Revenue Service provided new guidance to digital asset brokers, who will be required to report client transactions starting Jan. 1
- A federal judge ruled that blockchain-based publishing platform LBRY Inc. violated US law by selling its blockchain token without registering its offerings with the SEC
MORE READING
- FTX’s Freefall Into Bankruptcy Shows Why Case File Is Empty
- Crypto Enforcement Gears Up as the States Set the Pace: Analysis
- Most Urgent Crypto Question Is How Far FTX Tentacles Might Reach
- Crypto Contagion Seen Limited as Speculative Stocks Fringe Soars
- FTX Withdraws US Derivatives Clearing Plan From CFTC
- FTX Latest: European License Suspended by Cyprus Regulator
- Odd Lots Newsletter: The Real Problem With Crypto
- FTX Empire Goes Bankrupt in Sudden Fall of Bankman-Fried
- Thai Regulator Urges Caution Against Crypto Mining Investment
- Lawmaker Behind Japan Crypto Strategy Says Rules Still Too Tight
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