Collapse of FTX cryptocurrency under scrutiny by federal authorities
by Guardian staff and agencies from Technology | The Guardian on (#65PPR)
The blow comes soon after rival Binance backed out of a merger deal this week after due diligence of the exchange's books
The swift collapse of the cryptocurrency exchange FTX sent more shockwaves through the crypto world on Thursday, with authorities now investigating the firm for potential securities violations and analysts bracing for a further downturn in crypto prices.
FTX had agreed this week to sell itself to its bigger rival Binance after experiencing the cryptocurrency equivalent of a bank run. Customers fled the exchange after becoming concerned about whether FTX had sufficient capital.
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