FTX Legal Compliance Team Exodus: Report Suggests Majority Quit Amid Liquidity Crisis

Recent sources indicate that a significant number of FTX personnel in key teams have left the company due to the exchange’s liquidity crisis. The majority of FTX's legal and compliance team quit Tuesday, Semafor reported, citing people familiar with the matter. This mass departure could create a headache as the embattled firm faces intense scrutiny.

According to the people familiar with the matter, the majority of the legal and compliance team of SBF’s (Sam Bankman-Fried's) exchange quit the company on Tuesday evening. The departure, reported by Semafor, a news organization that FTX's Sam Bankman-Fried invested in, cites people familiar with the matter, adding further weight to concerns surrounding FTX's future. Most of the legal and compliance staff of cryptocurrency exchange FTX have resigned from the company as the acquisition by Binance hangs in the balance.

To decide whether to move forward, Binance is reportedly conducting due diligence, and the absence of a legal and compliance team raises serious questions about the long-term viability and regulatory hurdles FTX will face. The sudden exodus adds another layer of complexity to an already volatile situation.