Critical Development: US Department of Justice to Meet with Binance!

There are new developments in the chain of events around Binance-FTX, which has created a deep crisis in the cryptocurrency market. The US Department of Justice and regulators have contacted Binance regarding the FTX talks. Authorities want to know what Binance has learned about the inner workings of FTX.

US Department of Justice to meet with Binance for information on FTX

According to an individual with knowledge of the situation, US authorities, including the Justice Department, contacted crypto exchange Binance to inquire about their recent interaction with FTX as the two companies are discussing a potential bailout.

Binance said it has heard from US financial regulators in addition to regulators in Europe. He also asked for information on what Binance executives have learned about FTX’s internal workings this week. A Binance spokesperson declined to comment on the discussions. A Washington-based FTX official did not quickly respond to a request for comment.

A person familiar with the conversations said that Binance, the world’s largest global crypto platform by volume, is considering an urgent acquisition of FTX to save the firm from a liquidity crunch that measures billions of dollars. But Binance’s due diligence team quickly discovered dark conflicts through FTX’s affiliation with Alameda Research, the trading firm founded by FTX CEO Sam Bankman-Fried. And in person, the FTX client funds seemed to have been used for business purposes.

FTX instructing employees to keep work-related documents As you follow on, the company’s collapse has caused concern from both industry and government. Senator Sherrod Brown (D-Ohio) noted on Thursday that:

It’s invaluable for our financial watchers to investigate what led to FTX’s downfall. This allows us to fully understand the abuses and abuses that occur.

Also this week, FTX USA’s most appropriate attorney instructed employees to keep work-related documents. This is another sign of potential legal exposure for Bankman-Fried’s crypto empire. On Wednesday, FTX US General Counsel Ryne Miller instructed the worker to withhold emails, notices, notes and documents resulting from his work at FTX, FTX US, Alameda and affiliated companies, sources said.

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