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FTX was under US prosecutors radar before collapse

5 d ago1 min readRegulation
FTX was under US prosecutors radar before collapse
  • The Attorney’s Office of the Southern District of New York was investigating FTX months before its collapse
  • The investigation was related to United States Bank Secrecy Act
  • The most infamous crypto exchange in the market currently – FTX – has hit the spotlight again. This time around, the exchange has made headlines for its relationship with the United States regulators. According to the latest reports by Bloomberg, the exchange was under the US prosecutors radar long before it even collapsed.

    Notably, the investigation was led by the US Attorney’s Office for the Southern District of New York, with Damian Williams heading the case. The report stated that the office has been investigating crypto exchanges that have a presence in the US and outside. And, one among these exchanges was FTX.

    In particular, the agency was looking into whether or not these exchanges were complying with the Bank Secrecy Act aka Currency and Foreign Transactions Act. The act mandates financial institutions to have proper records of financial transactions exceeding the daily limit of $10,000. The aim of the law is to prevent money laundering and terrorism financing. The law has been previously leveraged against crypto exchanges claiming to have no US customers.

    The story is still developing.

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