The US authorities are moving forward to probe the collapse of now bankrupt FTX Qoute Coin
New York City: The US Securities and Exchange Commission, Commodity Futures Trading Commission (CFTC) and Department of Justice have launched a joint investigation into the collapse of Forex Trading Exchange (FXT). The investigation aims to determine whether FXT violated federal securities laws, according to a press release issued by the DOJ. The SEC and CFTC will also look into whether FXT violated federal commodities laws.
“The collapse of FXT represents a major loss to investors and the financial services industry,” said James McDonald, director of enforcement at the CFTC. “We will work with our partners at the SEC and other government agencies to ensure that all those responsible are held accountable.”
The Securities and Exchange Commission has launched an investigation into the collapse of Financial Trading Exchange. The CFTC has also opened an inquiry into the matter.
The SEC’s investigation will focus on whether FTX violated any securities laws when it collapsed in June, leaving millions of dollars in losses for its customers. The CFTC has also opened an inquiry into FTX’s collapse, but will be looking more closely at whether some of its clients have been misled by FTX’s marketing materials and trading software.
In total, more than 10 million people lost $2.5 billion during FTX’s collapse; many were unable to retrieve their money because of technical problems with the company’s electronic trading platform over the last few weeks before its closure.
Forex.io is accused of defrauding investors through its use of false advertising, according to the SEC. The company failed to deliver on its promise to investors that they would receive interest on their investments, according to a statement from SEC chairman Jay Clayton. The company also misled customers about their ability to withdraw funds from their accounts once they had been deposited into them.
The collapse of Forex.io has led to significant losses for investors who had bought into its promises of high returns on investments in cryptocurrencies like bitcoin and Ethereum. According to CNBC, some customers were left empty-handed when they tried to withdraw their funds after investing thousands of dollars in cryptocurrency earlier this year.
