The SEC would be investigating whether investors in the FTX exchange had done their homework to ensure the investment was sound.
The US Securities and Exchange Commission (SEC) is investigating whether investors in the bankrupt FTX exchange followed proper due diligence procedures. Reuters reported on Thursday, citing two sources close to the investigation.
In December, the SEC charged former FTX CEO Sam Bankman-Fried with conspiring to defraud stock investors who contributed more than $1.8 billion to the company. But also examine whether these companies have done their homework to make sure the investment made sense. According to the report.
The report did not indicate which companies were being investigated, and the investigation does not indicate any wrongdoing. But it will focus on whether the companies have fulfilled their fiduciary duty to their investors. So said Reuters.