The US Department of Justice contacted Binance for information on the current status of FTX.
Authorities want to know what Binance has learned about the functioning of FTX.
USA Turns Its Eye To FTX
US authorities, including the Department of Justice, contacted cryptocurrency exchange Binance for information on FTX.
Binance noted that along with regulators in Europe, there is also a request for communication from financial regulators in the US. Regulators are requesting information on what Binance has learned about FTX.
Binance and FTX officials have not made a comment on the subject.
A source familiar with the talks said that Binance is considering an urgent acquisition of FTX to save the firm from a liquidity crunch that has been measured in billions of dollars.
However, Binance’s due diligence team discovered questionable conflicts over FTX’s relationship with Alameda Research, the trading firm founded by Sam Bankman Fried. According to the team, funds from FTX clients were used for business purposes.
The collapse of the company has caused great concern in both the crypto industry and the government. Senator Sherrod Brown said:
“It is extremely important that our financial watchdogs investigate what led to FTX’s downfall. So we can fully understand the abuses that have occurred.”
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