FTX’s Australian subsidiary was under scrutiny from the Australian Securities and Investments Commission (ASIC) eight months before it went bankrupt in November 2022, according to documents obtained by Guardian Australia.
FTX acquired an Australian Financial Services License (AFSL) by taking over IFS Markets in December 2021 and was allowed to bypass scrutiny usually applied to new licensees.
In March 2022, ASIC issued a Sect 912C notice to FTX requiring the exchange to provide documents for the regulator to assess its compliance with AFSL conditions.
The regulator continued to monitor FTX with surveillance activity and three notices were issued in the months leading to its bankruptcy on November 11, 2022.
The Australian subsidiary’s financial license was suspended on Nov 16 and it is now in voluntary administration.
