SEC Probing FTX Liquidity Crunch, Sam Bankman-Fried Crypto Empire

Anvesh Reddy
November 9, 2022 Updated July 21, 2025
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FTX SEC Probe news: Sam Bankman-Fried’s FTX is now under the crosshairs of the US SEC and CFTC after the exchange’s liquidity crisis played out. The US regulators are probing the manner in which FTX handled user assets. The U.S. Securities and Exchange Commission is also looking at the links between FTX and other entities belonging to Sam Bankman-Fried. According to a Bloomberg report, the probe is focused on the lead up to the liquidity crunch at the crypto exchange.

FTX SEC Probe: Where Is It Heading?

The report quoted people in the know of things in the FTX SEC probe as saying the focus is on FTX US entity and Alameda Research. Other reports suggested earlier that FTX has had more trouble behind the scenes in recent times. Alameda Research was reportedly in troubled waters earlier this year but it was bailed out by FTX’s funds. As per CoinMetrics data, Alameda Research was already in trouble in the second quarter after the Three Arrows Capital (3AC) collpase.

The SEC probe into the Sam Bankman-Fried company began long before the FTX meltdown happened. As per insider information, the investigation was launched several months ago. They said the probe was centered around the crypto transaction activity of the US arm of FTX. Meanwhile, the FTX token (FTT) crashed after news of Binance potential acquisition of FTX broke. As of writing, FTT price stands at $4.14, down 79.02% in the last 24 hours, according to price tracking platform CoinMarketCap.

FTX Market Value Estimation

In a latest update, Bloomberg is reportedly estimating that FTX is now effectively crashed to the bottom. According to Bloomberg estimates, FTX is now worth just $1, down from $32 billion.

Meanwhile, latest reports suggest Binance is highly unlikely to proceed with its proposed acquisition of troubled exchange FTX. The deal might not happen considering the initial assessment of FTX’s internal data and loan agreements.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1400 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at [email protected] or x.com/BitcoinReddy or linkedin.com/in/anveshreddybtc/
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.