The collapse of cryptocurrency exchange FTX sparked interest in the operations of the site a few months before its bankruptcy.
As reported The New York Times, U.S. authorities took an interest in the operations of cryptocurrency exchange FTX months before the site went bankrupt in order to clarify its possible role in the collapse of digital assets TerraUSD and Luna. A significant amount of TerraUSD sales were reportedly from FTX, but it remains to be seen how much of that contributed to the collapse of those digital assets and whether it was some sort of coordinated trading strategy.
Do Kwon, head of Terraform Labs, the company that was behind TerraUSD and Luna, has already responded to the findings, saying that he would like to see this situation fully clarified.
The activity of FTX itself is also under focus attention of U.S. regulators, in particular, the Securities and Exchange Commission (SEC), as well as on trade in commodity futures (CFTC).
Meanwhile, former FTX head and founder Sam Bankman-Fried ignored challenge him to the U.S. Senate to answer questions from representatives of the Banking Committee in the upper chamber of the U.S. Parliament. A response from Bankman-Fried was expected by Dec. 8 and would have preceded the Dec. 14 hearing and now he may be subpoenaed by the U.S. Congress, even though FTX itself was headquartered in the Bahamas and worked with U.S. clients.
One of the heads of the Committee, Democrat Sharrod Brown, will retain his position in the renewed Senate, which begins in January 2023, while the other co-chair, Republican Pat Toomey, resigns. Thus, Brown intends to continue to insist that Bankman-Fried appear at U.S. Congressional hearings.