California Regulators To Probe FTX Digital Asset Exchange Collapse

The Department of Financial Protection and Innovation (DFPI) in the state of California recently declared that it will open up an inquiry as to the “apparent failure” of the virtual asset exchange FTX.

In the announcement, California regulators mentioned that the DFPI takes this supervision responsibility “very seriously” and that the department anticipates all entities offering financial services in the state to abide by local financial laws.

Furthermore, the announcement also encouraged anyone in the state who has been affected by the events of the ongoing FTX saga, to call a dedicated hotline.

The state of California is one of several governmental actors within the United States to recently speak out on the matter, in spite of the fact that FTX claims its United States branch is not involved in the matter.

Maxine Waters, the chairperson of the United States House of Representatives Financial Services Committee, called for stiff industry regulations and emphasized that FTX tokens are “worthless” and its customers are in the dark.

United States Senators Debbie Stabenow and John Boozman reiterated their commitment to finishing and publishing an upcoming digital currency bill in light of the news, also mentioning the incident.

While all of this was underway, FTX US resigned from the Crypto Council for Innovation.