US Probes FTX Empire Over Handling of Client Funds and Lending

US financial regulators are investigating whether beleaguered crypto-exchange FTX.com properly handled customer funds, as well as its relationship with other parts of Sam Bankman-Fried's crypto empire, Bloomberg News reported Wednesday, citing people familiar with the matter. From the report: The investigations by the Securities and Exchange Commission and the Commodity Futures Trading Commission relate to the liquidity crisis at the trading platform that led to a planned buyout of its non-US operations by rival exchange Binance Holdings, according to the people. Regulators are also looking into the platform's relationship with FTX.com's American counterpart FTX US and Bankman-Fried's trading house Alameda Research. The SEC's inquiry began months ago as a probe into FTX US and its crypto-lending activities, said two of the people.

Read more of this story at Slashdot.