Sam Bankman-Fried is being investigated by the U.S. SEC.

Following the spectacular demise of FTX, its CEO, Sam Bankman-Fried, is now facing a probe by the United States Securities and Exchange Commission (SEC). This is excellent news for FTX investors, as it confirms that the company is in serious trouble and that the CEO will be held accountable.

Bloomberg is reporting that the CEO of FTX, Sam Bankman-Fried, is being investigated by the SEC for possible violations of securities rules., FTX US, and sister company Alameda Research are under investigation by government officials. The Department of Justice is also investigating the situation. Bloomberg’s source says that the SEC is investigating Bankman-Fried’s involvement in the recent actions that helped push into the massive liquidity crisis it is now facing.

Reports say that US regulators, including the SEC, DOJ, and CFTC, are looking into whether mishandled customer funds and are reviewing the platform’s relationship with Bankman-Fried’s other businesses. Alameda Research is being investigated for allegedly transferring around $4 billion from its FTX subsidiary into the company earlier this year.

FTX is said to be under pressure after growing rapidly but rumors of Alameda Research’s financial problems are causing growing concern that another Terra-like situation may occur. Users rushed to withdraw $6 billion in tokens from the exchange, which caused Binance to announce that it would acquire FTX pending due diligence. Binance CEO Changpeng “CZ” Zhao later announced that the company has decided not to proceed with the deal after investigating its internal data and financial commitments.

As FTX’s crisis continued, securities regulators in the Bahamas said it was freezing the company’s assets and appointing a provisional liquidator.

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