Binance confirms discussions with regulators over its role in the FTX collapse

Regulators in many countries have sent Binance inquiries regarding its collapse of FTX involvement. The Block confirmed this, according to a spokesperson for the cryptocurrency exchange.

A company employee refused to provide details, citing the confidentiality of talks with regulators.

Earlier, the exchange’s staff responded to questions from members of the UK House of Commons. Lawmakers expressed disappointment at the lack of specifics in the responses.

According to Bloomberg, the Treasury Committee was expected to obtain internal Binance records regarding the decision to sell on November 6 the FTT, the utility token of the FTX exchange.

On November 8, Sam Bankman-Fried and Changpeng Zhao announced a strategic partnership. On November 10 Binance declined to acquire FTX. Representatives of the latter said they would not be able to resolve the platform’s problems.

On November 11, FTX, Alameda Research and about 130 affiliated firms filed for bankruptcy.

Regulators’ inquiries to Zhao’s exchange add to ongoing investigations into entities linked to Bankman-Fried, carried out by the U.S. Department of Justice, the CFTC and the SEC.

As reported, Binance’s role in the rival’s sudden collapse has also come under close scrutiny by the US Congress. Hearings on the topic are set for December.

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