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California Regulator Reveals Investigation Into FTX’s Failure, Says ‘Crypto Assets Are High-Risk Investments’

News Feed - 2022-11-11 11:11:29

California Regulator Reveals Investigation Into FTX"s Failure, Says "Crypto Assets Are High-Risk Investments"


After it was discovered that FTX was dealing with financial issues and the crypto exchange paused withdrawals, U.S. regulators started to take notice. On Nov. 10, 2022, California’s Department of Financial Protection and Innovation (DFPI) published a consumer alert and said the state regulator was “investigating the apparent failure of crypto asset platform FTX.” California’s Department of Financial Protection Investigates FTX, Publishes Consumer Warning


Following the report that shows the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) are reportedly investigating FTX, California’s DFPI has published a consumer warning about FTX.


“[DFPI] is investigating the apparent failure of crypto asset platform FTX,” the regulator’s warning says. “We encourage consumers to be aware of the risks of investing in volatile crypto assets. Consumers and investors must be aware that crypto assets are high-risk investments and should not expect to be reimbursed for any losses.”


The news follows FTX’s rise to the top after close to three years, only to plummet to the bottom in a matter of three days. Furthermore, U.S. Senator Elizabeth Warren told the public that the incident has highlighted that the crypto industry needs “more aggressive enforcement.” Additionally, the Bahamas Securities Commission revealed it has frozen the assets of FTX Digital Markets.


California’s DFPI says that the regulator is responsible for the state’s lending and banking laws and crypto asset providers are not the same as California-regulated financial institutions, the DFPI agency highlighted. “Crypto asset providers are not governed by the same rules and protections as banks and credit unions, which are required to have deposit insurance,” the consumer warning notes. Tags in this story Bahamas Securities Commission, california, California regulator, California’s DFPI, Crypto, crypto assets, DFPI, Digital Assets, Digital Currency, DOJ, Elizabeth Warren, ftx, FTX Exchange, Investigation, SEC


What do you think about California’s DFPI publishing a consumer warning concerning the crypto exchange FTX? Let us know what you think about this subject in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Bahamas Regulator Freezes FTX Assets — Supreme Court Appoints Provisional Liquidator REGULATION | 11 hours ago Indonesia to Change Crypto Regulators as Part of Plan for Stricter Oversight REGULATION | 13 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBitcoin, Ethereum Technical Analysis: ETH Moves Higher as Markets Continue to React to US Inflation Report Next articleTroubled Crypto Exchange FTX Files for Chapter 11 Bankruptcy Protection, CEO Steps Down Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItTony Hawk"s Latest NFTs to Come With Signed Physical Skateboards


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