US financial regulators are on the radar over the FTX collapse

The CFTC & SEC former & current officials may face scrutiny because of the increasing demand for investigation on FTX exchange & exchange ties with policymakers.

FTX is now a most infamous crypto exchange because of its failure as the biggest crypto platform, unfortunately, thanks to the backend team which wrongly mismanaged the user’s funds. Now the crypto community is forcing to initiate an investigation against the FTX exchange over its relationship with the United States Securities and Exchange Commission (SEC) chairman Gary Gensler.

According to avail records, FTX.us hired former CFTC attorney Ryne Miller as General Counsel and in late 2021 FTX hired former CFTC Commissioner Mark Wetjen as Head of Policy and Regulatory Strategy. In September of this year, FTX US hired former CFTC Commissioner Jill Sommers for the role of the board of FTX US Derivatives. 

The hiring of these three big former US government personalities by the FTX & its subsidiary FTXus was to lead the Company’s communications with U.S. regulatory and legislative bodies, such as the CFTC, SEC, and various House and Senate Committees.”

Initially, Crypto Community leaders tried to initiate a high-level investigation to find out possible ties between FTX founder SBF & SEC chairman Gary Gensler but now the situation has changed.

Experts say that increasing demand for investigations may now increase the chances of scrutiny on the three former officials of SEC & CFTC.

According to many reports, these former govt officials were aware of the mismanagement of the user’s funds, and also few current government officials were also aware of the mistakes of the FTX exchange but still, the exchange facilitated a very big fraud with the customers. 

Reportedly, FTX leaders were free & full of courage to use the user’s funds in their ways, because of their ties with Government officials. 

Read also: US financial watchdog plans official hearing on FTX collapse