Beyond actual communications, Finra is also asking firms to provide their written supervisory procedures concerning communications, as wells as compliance policies, manuals, “and any other written guidance in.”
The regulator also wants copies of all the contracts broker-dealers have signed regarding relationships with affiliates and details about any determination that was made with them regarding which of firm customers received information.
FTX, one of the world’s largest cryptocurrency exchange, filed for Chapter 11 bankruptcy last week, and investigators are now looking into what went wrong. The exchange has been accused of using customers’ funds for investments without permission and possibly even political contributions.
The melee was set off when Changpeng Zhao, the billionaire founder of Binance, the world’s biggest crypto exchange by trading volume, tweeted that his company was in the process of dumping its stash of more than $500 million worth of FTT, FTX’s token, the Wall Street Journal reported.
“Zhao said the move was for “risk management” purposes, citing a recent report on crypto website CoinDesk revealing that billions of dollars worth of the illiquid token were sitting on the balance sheet of FTX’s sister firm, Alameda,” the paper said.
In a webinar on FTX’s collapse last week, Ric Edelman, founder of the Digital Assets Council of Financial Professionals, called the debacle a “black eye on crypto.”
Ric Edelman, founder of the Digital Assets Council of Financial Professionals, called FTX’s failure a “black eye” on the industry during a webinar last week.