FTX Issues a Scam Alert after Allegations of Unlawful Operations by UK Financial Regulator
FTX Issues a Scam Alert
Modified Date:- Published Date:-Categories: Cryptocurrency
FTX Issues a ScamAlert after Allegations of Unlawful Operations by UK Financial Regulator
TheDrama Unfolds
The CEO toldTwitter that a swindler had been impersonating FTX in the United Kingdom byusing phone calls to try and scam unexpecting United Kingdom citizens.The CEO also gave official websites for FTX and further emphasized thatthe company does not communicate with clients on the phone.
Just a daybefore Sam Bankman-Fried posted the scam alert on Twitter, the United KingdomFinancial Conduct Authority informed consumers that the FTX crypto exchangeis suspected of operating in the UK without following the country’s legalprocedures.
“Almostall firms and individuals offering, promoting, or selling financial services orproducts in the UK have to be authorized or registered by us,” the regulator said. “This firm isnot authorized by us and is targeting people in the UK.“
The incidenthappened simultaneously when the crypto exchange firm strategically pushed forEuropean expansion. It is still unclear if the cryptocurrency exchangefirm was illegally operating within the boundaries of the United Kingdom beforethe financial authority raised the illegal conduct of the firm.
CySECIssued Operations License to FTX
As part ofits expansion strategy in Europe, FTX obtained an operations license from the CyprusSecurities Exchange Commission (CySEC). The permit allowed the cryptoderivative exchange firm to extend its operations in the Cyprus jurisdiction asa Cyprus investment firm, CIF. The license from CySEC also allowed the companyto own a local company it had previously purchased.
SamBankman-Fried‘sstatement explained that having the license in the European Union was a vitalstep toward FTX’s goal of becoming the most regulated cryptocurrency exchangefirm in the world.Sam Bankman-Fried said, “Securing this license in theEuropean Union is an important step in achieving our goal of becoming one ofthe most regulated exchanges in the world.”
FTX is a cryptocurrency exchange service that has been accused of illegally operating within the United Kingdom. The firm reportedly hired staff members in the Philippines and China who were working on behalf of the firm. This led to claims that FTX was operating illegally, which is why an alert was raised on its website.