Australian Regulator Investigated FTX Months Before Collapse

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Australian Securities Commissionsecurities and investments (ASIC), as it turned out, launched an investigation into the activities of the local division of the FTX exchange 8 months before the collapse of the site.

According to Guardian Australia, officersASIC had suspicions about FTX Australia. The fact is that in order to obtain a license, FTX Australia absorbed another cryptocurrency company - in December 2021, FTX bought out IFS Markets and thus acquired the rights to use the license of this company. At the same time, FTX Australia itself began operating only in March 2022. Such a gap in activity seemed suspicious to regulator representatives.

ASIC submitted a request to FTX Australia in the samemonth when the company launched. The regulator required the exchange to provide documents that would confirm that the company complies with the terms of the FSL license. To do this, FTX had to provide documents indicating the list of services provided.

The publication also reports that the regulator wasconcerned about FTX Australia's activities up to October 2022. And in November, the cryptocurrency exchange collapsed. On November 16 last year, the regulator revoked the company's license.