According to Cointelegraph, due to a decline in the value of its internal token, FTX token, cryptocurrency exchange FTX, and its 130 associate companies just filed for bankruptcy.
Native cryptocurrencies are thought to have been the main cause of the demise of several exchanges and ecosystems this year, most recently during the FTX crash. According to Cointelegraph, the Korean financial regulator, Korea Financial Intelligence Unit (KoFIU), has reportedly started an investigation into cryptocurrency exchanges over their own, self-issued tokens.
According to Cointelegraph, due to a price fall of its proprietary token, FTX token, cryptocurrency exchange FTX, and its 130 associate companies just filed for bankruptcy. According to findings from a local article, the goal of KoFIU’s inquiry is to guarantee that regulations are followed with regard to the safety of investors. Initial examinations showed that all bitcoin exchanges in South Korea operated legally. Although “there are still some questions linked” to in-house token listings, a Financial Services Commission (FSC) spokeswoman announced intentions for a full inquiry.
According to information provided by Cointelegraph, Flats Exchange is being investigated as a suspect for launching its own coin, FLAT, in January 2020. Authorities have given the go-ahead for major exchanges like Upbit and Bithumb, while smaller exchanges are anticipated to be the focus of any probes.
Additionally, according to Cointelegraph, Shin Hyun-seong, co-founder of FTX, had approximately $104.4 million (140 billion won) in assets frozen by South Korean authorities due to suspicions that he had benefited from illegal LUNA sales. It is reported that the Seoul Southern District Court authorized the freeze of Hyun-assets seong’s pending the outcome of additional inquiries.
