According to Bloomberg, crypto exchange FTX faces an investigation by the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) into its mismanagement of customer funds and the firm’s relationships with FTX.US and Alameda Research. The investigation by the SEC and CFTC stems from the recent FTX liquidity crisis that has caused a massive contagion effect across the crypto markets. The SEC first began looking into FTX US’s crypto lending activities and operations months ago, Bloomberg first reported, citing anonymous sources. Now, the CTFC is getting involved with the SEC and investigating FTX in addition to FTX.US, looking into the relationships between the two exchanges and trading firm Alameda.
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