Global regulators are closing in on embattled crypto exchange FTX as fallout spreads in digital asset markets and founder Sam Bankman-Fried pursues a last-ditch effort to raise up to $8bn in fresh funds.
Authorities in Japan, Australia and the Bahamas, where FTX is based, have all taken actions as worries mount that customers in one of the world’s biggest digital asset venues could face severe losses.
The regulatory crackdown is the latest blow for Bankman-Fried’s crypto empire, which was valued at $32bn just months ago. Its troubles have stung big-name investors, including Japan’s SoftBank, which plans to write down its $100mn investment in the group, a person familiar with the matter said on Friday.