Feds probing crypto exchange FTX over handling of client funds: report

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Feds probing crypto exchange FTX over handling of client funds: report
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The report, citing people familiar with the matter, comes a day after crypto exchange Binance said it would acquire FTX.

The Securities and Exchange Commission and the Commodity Futures Trading Commission are probing FTX’s relationship with its American counterpart FTX US and Bankman-Fried’s trading firm Alameda Research, the report said.

The report, citing people familiar with the matter, comes a day after crypto exchange Binance said it would acquire FTX. A CFTC spokesperson declined to comment. The SEC and FTX did not immediately respond to Reuters’ requests for comment. Cryptocurrencies saw a second day of sharp declines on Wednesday, as investors continued to fret about the stability of the sector and the financial health of FTX despite plans for a rescue deal from bigger rival Binance.

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