FTX was on the radar of the US Attorney’s Office for the Southern District of New York long before its collapse in early November and rushed bankruptcy protection suit, media reports said.
Prosecutors had been looking at the deviations by FTX with regard to compliance of the Bank Secrecy Act. The probe had targeted many cryptocurrency platforms within the US and their offshore arms as well. This included the Bahamas-based FTX , which also operated FTX US.
Now, more agencies are on FTX with broader investigations. They include the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and the Department of Justice.
Japan FTX to start withdrawals
Meanwhile, some positive developments are appearing on the FTX front. One, the bankrupt exchange’s Japanese arm is planning to restart customer withdrawals by the end of 2022, per reports in Japanese media quoting an unidentified FTX Japan executive.
Right now, withdrawals are not allowed, since FTX Japan shares the suspended payment system of parent FTX.
According to sources, FTX’s Japanese subsidiary has about $138 million in deposits as of November 10. However, the news is not an assertion of the financial health of FTX Japan and it is not in better shape compared to other FTX companies.
According to FTX’s liquidator and new CEO John Jay Ray, FTX Japan is in debt like FTX EU and other FTX subsidiaries.
