California Regulator Published FTX Consumer Alert

Following the news that the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) are allegedly looking into FTX, California’s Department of Financial Protection Investigates (DFPI) has released a consumer alert on the exchange.

According to California’s DFPI, the state’s lending and banking regulations are the regulator’s responsibility. The DFPI agency also emphasizes that providers of cryptoassets are not the same as California-regulated financial institutions. The consumer advisory mentions:

“Crypto asset providers are not managed by the same rules and protections as banks and credit unions, which are required to have deposit insurance.”

The revelation comes after FTX nearly reached the top of the market before falling to the bottom in only three days.

According to the latest update, FTX CEO Sam Bankman-Fried has announced filing for Chapter 11 bankruptcy of FTX, FTX US, and Alameda.

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Harold

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