• The US Securities and Exchange Commission (SEC) is seeking details about FTX investors‘ due diligence.
• New York Attorney General Letitia James sued former Celsius Network co-founder Alex Mashinsky, alleging that he defrauded investors out of billions of dollars of digital currency.
• European Central Bank executive Fabio Panetta suggested that cryptoassets should be regulated under online gambling laws.

The US Securities and Exchange Commission (SEC) is taking a closer look at the investors behind FTX in order to ensure that proper due diligence was followed. The regulator is asking financial firms what diligence policies and procedures they have in place, if any, and whether they followed them when choosing to invest in FTX. This inquiry is an important step in protecting investors from any potential risks.

In other news, New York Attorney General Letitia James filed a lawsuit against former Celsius Network co-founder Alex Mashinsky. The lawsuit alleges that Mashinsky defrauded investors out of billions of dollars of digital currency by making false statements about the soundness of Celsius’s financial condition and then concealing its dire situation after losing hundreds of millions of dollars in risky investments.

Furthermore, European Central Bank executive Fabio Panetta recently suggested that cryptoassets should be regulated under online gambling laws. According to Panetta, cryptos lack any intrinsic value and are simply a gamble disguised as an investment asset. He believes that regulating them under gambling laws is the best way to protect investors from potential risks.

Overall, it is clear that both government entities and regulatory bodies are taking steps to protect investors from potential risks and to ensure that proper due diligence is followed when investing in crypto-related assets. This is an important step in ensuring that the industry is able to continue growing in a safe and responsible manner.

SEC, NYAG Take Action to Protect Crypto Investors