FTX Under Surveillance by Australian Regulators Months Before Collapse

Although the entire FTX debacle took the industry by storm, it has now been reported that FTX was under surveillance by Australian regulators for up to six months prior to FTX was under surveillance by Australian authorities six months before its collapse. This revelation raises serious questions about the extent of the regulatory oversight and whether earlier intervention could have prevented the catastrophic downfall.

The Australian financial market regulator ASIC was suspicious about the activities of the local subsidiary of FTX from at least six months before the collapse of the exchange. Reports indicate that ASIC's concerns stemmed from the way FTX was operating within the Australian financial landscape.

Aussie regulators required FTX to disclose information about how it operated its Australian arm. This intense scrutiny suggests a deep-seated unease about the exchange's practices and compliance with local laws.

According to a publication issued by Guardian Australia, FTX was under surveillance by financial regulators in Australia six months before the firm’s spiral descent to bankruptcy. This confirms that the warning signs were present well in advance of the public collapse, sparking debate about the effectiveness of the regulatory response.

The news of this prior surveillance is significant for several reasons. Firstly, it highlights the potential for earlier intervention. Secondly, it raises questions about the information Australian regulators possessed and the actions they took (or didn't take). Finally, it underscores the importance of robust regulatory frameworks in the cryptocurrency industry to protect investors and maintain market integrity. The full scope of the surveillance and its findings are likely to be subject to ongoing investigations and legal proceedings.