{"id":8479,"date":"2022-11-11T19:32:49","date_gmt":"2022-11-11T19:32:49","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=8479"},"modified":"2022-11-11T19:32:50","modified_gmt":"2022-11-11T19:32:50","slug":"california-regulator-reveals-investigation-into-ftxs-failure-says-crypto-assets-are-high-risk-investments","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=8479","title":{"rendered":"California Regulator Reveals Investigation Into FTX&#8217;s Failure, Says &#8216;Crypto Assets Are High-Risk Investments&#8217;"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>After it was discovered that FTX was dealing with financial issues and the crypto exchange paused withdrawals, U.S. regulators started to take notice. On Nov. 10, 2022, California\u2019s Department of Financial Protection and Innovation (DFPI) published a consumer alert and said the state regulator was \u201cinvestigating the apparent failure of crypto asset platform FTX.\u201d<\/strong><\/p>\n<h2>California\u2019s Department of Financial Protection Investigates FTX, Publishes Consumer Warning<\/h2>\n<p>Following the report that shows the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) are reportedly investigating FTX, California\u2019s DFPI has published a consumer warning about FTX.<\/p>\n<p>\u201c[DFPI] is investigating the apparent failure of crypto asset platform FTX,\u201d the regulator\u2019s warning says. \u201cWe encourage consumers to be aware of the risks of investing in volatile crypto assets. Consumers and investors must be aware that crypto assets are high-risk investments and should not expect to be reimbursed for any losses.\u201d<\/p>\n<p>The news follows FTX\u2019s rise to the top after close to three years, only to plummet to the bottom in a matter of three days. Furthermore, U.S. Senator Elizabeth Warren told the public that the incident has highlighted that the crypto industry needs \u201cmore aggressive enforcement.\u201d Additionally, the Bahamas Securities Commission revealed it has frozen the assets of FTX Digital Markets.<\/p>\n<p>California\u2019s DFPI says that the regulator is responsible for the state\u2019s lending and banking laws and crypto asset providers are not the same as California-regulated financial institutions, the DFPI agency highlighted. \u201cCrypto asset providers are not governed by the same rules and protections as banks and credit unions, which are required to have deposit insurance,\u201d the consumer warning notes.<\/p>\n<p>Tags in this story<\/p>\n<p>Bahamas Securities Commission, california, California regulator, California\u2019s DFPI, Crypto, crypto assets, DFPI, Digital Assets, Digital Currency, DOJ, Elizabeth Warren, ftx, FTX Exchange, Investigation, SEC<\/p>\n<p><em><strong>What do you think about California\u2019s DFPI publishing a consumer warning concerning the crypto exchange FTX? Let us know what you think about this subject in the comments section below.<\/strong><\/em><\/p>\n<p>Jamie Redman <\/p>\n<p class=\"article__body__author__info__about\">\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.<\/p>\n<p><i class=\"td-icon-font td-icon-twitter\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/california-regulator-reveals-investigation-into-ftxs-failure-says-crypto-assets-are-high-risk-investments\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>After it was discovered that FTX was dealing with financial issues and the crypto exchange paused withdrawals, U.S. regulators started to take notice. On Nov. 10, 2022, California\u2019s Department of Financial Protection and Innovation (DFPI) published a consumer alert and said the state regulator was \u201cinvestigating the apparent failure of crypto asset platform FTX.\u201d California\u2019s [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8480,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-8479","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8479","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8479"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8479\/revisions"}],"predecessor-version":[{"id":8481,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8479\/revisions\/8481"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/8480"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8479"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8479"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8479"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}