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Factbox-Global regulatory actions against FTX

Published 11/11/2022, 02:04 PM
Updated 11/11/2022, 07:50 PM
© Reuters. Representations of cryptocurrencies are seen in front of displayed FTX logo in this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration

LONDON (Reuters) - FTX filed for U.S. bankruptcy proceedings on Friday, capping a week of turmoil for one of the world's largest cryptocurrency exchanges.

FTX and its local units, had already attracted scrutiny from regulators around the world.

Here's a roundup of what global regulators are doing about FTX:

UNITED STATES

FTX is under investigation by the U.S. Securities and Exchange Commission, Justice Department, and Commodity Futures Trading Commission, according to a source familiar with the investigations.

BAHAMAS

FTX's group headquarters is in the Bahamas. The Securities Commission of the Bahamas said on Thursday it would freeze the assets of FTX Digital Markets, the group's local unit, and also appointed a provisional liquidator for the unit.

EUROPE/CYPRUS

Cyprus's Securities and Exchange Commission asked FTX EU to suspend its operations on Nov. 9, the regulator said on Friday.

FTX announced in September it had received approval from the Cypriot regulator to operate as a Cyprus Investment Firm, allowing the company to fully own a local investment firm it had previously acquired.

This allowed FTX EU to serve the European Economic Area.

JAPAN

© Reuters. Representations of cryptocurrency Bitcoin are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration

FTX tweeted on Thursday that its local Japanese unit would go into "close only" mode, following the guidance of Japan's Financial Services Agency, preventing customers from opening new accounts or trading.

The local unit resumed withdrawals on Friday.

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