In wake of FTX, New York reminds crypto firms to segregate customer funds

01/24 02:40

New York's top financial regulator on Monday published guidance for crypto companies to improve customer protection in the event of insolvency or a similar proceeding – including a requirement for firms to keep customer funds separate. The New York Department of Financial Services (NYDFS) reiterated its requirements for record-keeping as a number of crypto entities, including Sam Bankman-Fried's FTX exchange, is undergoing bankruptcy proceedings in the U.S. Former FTX management is alleged to have misappropriated customer funds, including to prop up the exchange's sister trading firm Alameda Research ahead of its collapse. FTX's new CEO, John J. Ray III, has also lambasted the company's previous management for its poor record-keeping.
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