California DFPI announces to investigate the FTX crypto exchange’s apparent failure


  • The California DFPI is planning to open up an investigation related to the collapse of the FTX crypto exchange.
  • Californian regulators said that the DFPI takes this oversight responsibility seriously and that the department expects all financial bodies to comply with the local financial laws.
  • FTX US revealed that the trading on the platform might get halted, but the withdrawals will remain open.

The California Department of Financial Protection and Innovation (DFPI) made an announcement on November 10, 2022, that revealed it is planning to open up an investigation as to the evident failure of the crypto exchange FTX

The regulators revealed in an announcement that the DFPI is taking this negligence responsibility quite seriously. In addition to this, it was revealed that the department expects all the bodies that offer financial services in the state should comply with local financial laws. 

Moreover, it also encouraged anyone in the state who was by the events of the ongoing FTX saga to call a dedicated hotline. Sam Bankman-Fried, the founder of FTX, shared a tweet carrying 22 threads and regurgitated several times that the FTX US is a completely different entity than the international one facing the cataclysm. 

FTX US made an announcement on November 10 and revealed that there are chances that it might pause trading on the platform in the upcoming days. However, as mentioned on the US website, the withdrawals are and will remain open. 

Also, on November 10, the chair of the US House of Representatives Financial Services Committee, Maxine Waters, called for even more strict industry regulations and highlighted that FTX tokens are valueless and its customers are in the dark. 

The same day, Karine Jean-Pierre, the White House press secretary, released a statement addressing the fact that the administration is going to monitor activity in the crypto space closely. Along with this, it should be noted that the news underlines the requirement for sagacious regulation of cryptocurrencies

Most recently, FTX confirmed that it is going to sell to Binance, one of its competitors, amid worries over liquidity at the crypto exchange.