California’s Department of Financial Protection and Innovation (DFPI) announced on November 10 that it would launch an investigation into the “apparent failure” of cryptocurrency exchange FTX.
California regulators said in a statement that the DFPI takes this oversight responsibility “very seriously” and expects all entities that provide financial services in the state to comply with local financial laws. said that he is
We also urged everyone in the state affected by the events of the ongoing FTX saga to call our dedicated hotline.
California is one of many government officials in the US to speak out on the matter recently, despite the fact that FTX claims its US branch was not involved in the incident.
FTX founder Sam Bankman-Fried tweeted a thread of 22 tweets, reiterating over and over again that FTX US is a different entity than the international one facing turmoil.
19) Some other comments:
That’s about FTX International. FTX US, a US-based exchange that accepts Americans, was immune to this shit.
100% liquid. All users were able to fully withdraw (modulo gas charges, etc.).
That future update will come.
—SBF (@SBF_FTX) November 10, 2022
However, later on November 10th, FTX US announced that it may suspend trading on its platform in the next few days. Currently, the US website states that “withdrawals are still accepted”.
Related: FTX turmoil adds much-needed industry scrutiny to institutional investors
The incident is meant as a mechanism to call for further regulation of the cryptocurrency industry.
On November 10, US House Financial Services Committee Chairman Maxine Waters called for stronger industry regulation, stressing that the FTX token is “worthless” and its customers are in the dark.
On the same day, White House Press Secretary Carine Jean-Pierre issued a statement that the administration would “closely monitor” activity in the crypto space. Additionally, “recent news” highlights the need for “prudent regulation” of cryptocurrencies.
U.S. Senators Debbie Stabenow and John Boozman, citing the incident, reiterated their commitment to complete and publish the next crypto bill in light of the news.
While all this was going on, FTX US resigned from the Crypto Council for Innovation.
