Regulators circle FTX as rival exchanges try to calm investors

Regulators opened probes following last week’s spectacular collapse of crypto exchange FTX and rival exchanges sought to reassure jittery investors of their own stability, weighing on cryptocurrencies.

The implosion of FTX, once a darling of the crypto industry with a $32 billion valuation as of January, has spurred investigations by the USJustice Department, the Securities and Exchange Commission and Commodity Futures Trading Commission, a source with knowledge of the investigations said.

The SEC probe is also targeting FTX executives, their knowledge of the handling of customer funds and any potential breaking of securities laws, a second source with knowledge of the investigation said.