Skip to content

Sam Bankman-Fried's FTX Empire Faces US Probe Into Client Funds, Lending

  • SEC, CFTC scrutinize relationship between and FTX US
  • SEC investigation predates Binance move to buy
Bloomberg business news
Binance Shocks Crypto World in Move to Buy FTX
Updated on

US regulators are investigating whether beleaguered crypto-exchange mishandled customer funds, and they’re looking into the firm’s relationships with other parts of Sam Bankman-Fried’s crypto empire.

The inquiries by the Securities and Exchange Commission and the Commodity Futures Trading Commission relate to the liquidity crisis that has pushed FTX to the brink, according to three people familiar with the matter. The SEC’s scrutiny started months ago as a probe into FTX US and its crypto-lending activities, said two of the people, who who weren’t authorized to speak publicly on the matter.