Crypto firm FTX in talks with regulators, appoints directors as bankruptcy proceedings begin

BENGALURU –

Collapsed crypto exchange FTX

said in a court filing that it was in contact with financial regulators, and had appointed five new independent directors at each of its main companies, including Alameda Research.

FTX also confirmed that it had responded to a cyber attack last Friday, after saying on Saturday that it had seen unauthorised transactions on its platform.

The implosion of FTX, once a darling of the crypto industry with a US$32 billion (S$43.9 billion) valuation as at January, has spurred investigations by the US Justice Department, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), said a source.

In a court filing on Monday, FTX said it has been in contact with the US Attorney’s Office, SEC, CFTC and dozens of federal, state and international regulatory agencies over the past 72 hours.

FTX has appointed five independent directors to ensure proper corporate governance during its bankruptcy, lawyers for the company said in the filing. Former US District Court Judge Joseph Farnan and Mr Matthew Doheny will oversee FTX Trading.

Mr Mitchell Sonkin was appointed as a director at West Realm Shires, Mr Matthew Rosenberg at Alameda Research and Mr Rishi Jain at Clifton Bay Investments, according to the filing.

FTX filed for bankruptcy protection last Friday in one of the highest-profile crypto blow-ups after frenzied traders withdrew US$6 billion from the platform in just 72 hours and rival exchange Binance abandoned a rescue deal. REUTERS