FTX Stares At More Trouble As Justice Department Reportedly Joins SEC Probe Into Liquidity Crisis

The U.S. Department of Justice is reportedly looking into the FTX FTT/USD liquidity crisis and the turmoil surrounding the exchange’s founder, Sam Bankman-Fried.

What Happened: The DoJ is closely working with the Security Exchange Commission (SEC) to investigate the FTX saga, according to a report by Bloomberg, which cited a person familiar with the matter.

See More: How to Use Binance Smart Chain 

This comes after the overall cryptocurrency market witnessed panic selling as investors fear FTX insolvency. Binance founder Changpeng Zhao had a significant part in the process, driving down FTX's price by 80% in just 24 hours.

FTX has faced mounting legal problems in Washington as a result of Bankman-Fried's other crypto concerns. The SEC and the Commodity Futures Trading Commission are investigating whether FTX mishandled customer funds and are looking into the firm's connections to other parts of the cryptocurrency industry.

However, the initiation of inquiries does not imply that anyone will be accused of wrongdoing.

Price Action: FTT is trading at $2.35, down 60% in the last 24 hours, according to data from Benzinga Pro.

Read Next: Binance Tops Up $1 Billion SAFU Fund to Protect User Assets

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Posted In: CryptocurrencyGovernmentNewsRegulationsTop StoriesMarketsMediaBinanceChangpeng ZhaoFTTFTXSam Bankman-FriedU.S. Department of Justice
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