Australian Regulator Investigated FTX Months Before Collapse

The Australian Securities and Investments Commission (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.

ASIC officers were suspicious of FTX Australia, according to Guardian 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, received the rights to use the license of this company.. At the same time, FTX Australia itself began to work only in March 2022.. Such a gap in activity seemed suspicious to the representatives of the regulator.

ASIC submitted a request to FTX Australia the same month it 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 was concerned about the activities of FTX Australia until October 2022.. And in November, the cryptocurrency exchange collapsed. On November 16 last year, the regulator revoked the license from the company.