Report Reveals Aussie Regulator’s Worries on FTX Months Before Implosion

FTX’s Australian subsidiary was flagged by Australia’s financial regulator, ASIC, as much as 8 months before the exchange went bankrupt.

According to documents obtained by Guardian Australia, ASIC had concerns about FTX Australia’s operations and license obtained through a company takeover.

FTX Australia acquired its license by taking over IFS Markets in Dec 2021 and began operations in Mar 2022, sidestepping the usual level of scrutiny for new licensees.

ASIC issued a Sect 912C notice to FTX in Mar 2022, requiring it to provide documents for assessment of AFSL license conditions.

The regulator had FTX under surveillance activity and issued three notices before FTX’s bankruptcy on Nov 11, 2022. FTX Australia’s financial license was suspended and went into voluntary administration.