At The Time of Collapse, FTX Was Under Surveillance by the Australian Regulator, According to Documents

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Australian financial regulators have revealed that they had been keeping a close eye on the local operations of cryptocurrency trading platform FTX for six months before its spectacular collapse. Documents obtained by the Guardian Australia revealed everything.

An ASIC spokesperson said, “Since March 2022, Asic had made enquiries with FTX Australia about the financial products offered by FTX Australia. The issues raised included pricing, FTX Australia’s compliance with Asic’s [contract for differences] product intervention order and its on-boarding of clients.”

The global cryptocurrency trading platform stopped operating in November after reports emerged that it was filing for bankruptcy protection in the US, prompting its Australian companies to enter administration voluntarily.

Around 30,000 Australian customers were left out of pocket when the cryptocurrency trading platform FTX collapsed. Many of these customers were owed money or cryptocurrency from the exchange, with some being owed as much as $1m.

Investors have since been unable to access their accounts, and the administrators appointed are still trying to locate them. In addition, many investors have reported difficulties getting their funds back through customer service channels or other recovery services available in Australia.

Due to this situation, members of parliament have called for more stringent legal regulation and oversight of exchanges like FTX to protect retail investors from such losses in the future. Still, many people remain sceptical about whether any form of regulation can protect users from potential frauds and scams in online exchanges like this one.

In light of these events, ASIC closely monitors any new crypto platforms operating within Australia until they meet appropriate regulatory requirements and have adequate systems to protect customer funds from theft or mismanagement. As part of this surveillance process, ASIC will continue to seek answers from those involved with these platforms and hold them accountable for their actions if needed.

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