FTX hires ex-regulators to investigate firm’s collapse

2022/11/25 03:34

According to WSJ, cryptocurrency exchange FTX, whose recent collapse has led to questions about lacking regulatory oversight, has hired a fitting team to help untangle the mess: former senior U.S. regulators. In its first hearing in Delaware bankruptcy court on Tuesday, a lawyer representing FTX said the firm has hired former enforcement chiefs from the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, now both partners at law firm Sullivan & Cromwell LLP, to help the company’s new chief executive investigate what went wrong. FTX has hired Steven Peikin, who served as co-director of the SEC enforcement division between 2017 and 2020, and James McDonald, who was director of enforcement at derivatives regulator CFTC, also from 2017 to 2020.

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