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Globe says SEC investigates FTX but Canada on sidelines

2022-11-16 08:26 ET - In the News

See In the News (C-*SEC) U S Securities and Exchange Commission

The Globe and Mail reports in its Wednesday edition that the stunning implosion of FTX Ltd. has derailed its plans to officially launch in Canada, but it is unclear if regulators in this country were even able to look at the books of the cryptocurrency exchange. The Globe's Temur Durrani writes that months before it filed for bankruptcy amid a scandal that continues to reverberate, FTX was on course in June to acquire Bitvo Inc., a Calgary-based crypto exchange regulated by all 13 provincial and territorial securities commissions in Canada. It was one of several opportunities Canadian regulators were ostensibly provided to look closely at FTX's finances. Bahamas-based FTX had already been operating in Canada, despite not having regulatory approval. Retail investors were able to hold digital wallets on FTX's platform to store their crypto, with many using VPN technology, which anonymized their Canadian location and created a private network from a public Internet connection. FTX is facing a criminal investigation in the Bahamas, and U.S. prosecutors -- including the Justice Department, the Securities and Exchange Commission and the Commodity Futures Trading Commission -- are investigating how FTX handled customer funds.

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