US Authorities to Probe Binance’s Involvement in the FTX Demise

• The US Congress has decided to investigate Binance’s role in the collapse of FTX.
•  Binance’s involvement will be discussed at a December hearing.

Binance, the largest cryptocurrency exchange is being investigated by the US authorities. According to a senior House Republican, the United States Congress has decided to probe Binance, claiming its involvement in the demise of the FTX exchange.

In accordance with this, Patrick McHenry, a U.S representative stated: 

This is serious. I think that this is a major event.

At the same time, Binance’s participation in the FTX’s collapse will be discussed at a hearing in December, according to the announcement. 

US Authorities to Tight Regulations

Reportedly, the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and the Justice Department have teamed up to investigate the bankrupt cryptocurrency exchange FTX, which handled its customers’ money improperly.

Following the third largest exchange’s downfall, many experts had anticipated that the crypto industry would face more regulations from the higher authorities. Surprisingly, Binance CEO, Changpeng Zhao stressed the need for regulations in the crypto domain, amid the ongoing issues regarding FTX. 

CZ expressed: 

We’re in a new industry, we’ve seen in the past week, things go crazy in the industry. We do need some regulations, we do need to do this properly, we do need to do this in a stable way.

However, apart from FTX, the US authorities are now moving towards Binance also.

Furtherly, Binance has refuted its direct involvement in FTX’s demise. The company claimed that financial irregularities and possible fraud were the cause of FTX’s failure.