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Australia's markets regulator internally discussed FTX's launch in Australia around March 2022 raising concerns around return on investment claims, according to a document by the regulator.
56 documents published by the Australian Securities and Investments Commission (ASIC) on Monday, revealed that ASIC had flagged an article by the Australian Financial Review about FTX's Australia launch. The article had said ftx would enable merchants to purchase crypto assets with margin loans up to 20 times their investment.
Previously reported on investigations by asic.
FTX Australia called in administrators, the process of handing over control to licensed insolvency practitioners, hours before FTX filed for bankruptcy protection in the United States on Nov. 11, 2022. Australia's government made moves to tighten safety around crypto shortly after. The exchange must approximately 30,000 cryptocurrency or cash customers.
In December 2022, Australia's Assistant Treasurer Stephen Jones pushed back against ASIC's suggestion that it lacked the power to intervene on the financial services licence of FTX. Asic already had "broad powers" to suspend, revoke or amend an Australian financial services license, Jones said.
"Since March 2022, asic had inquired with ftx australia about ftx australia's financial products. The issues raised included price, ftx Australia's conformity with the order of intervention product cfd asic and its integration of customers,' said an asic spokesperson.
"asic consideration of these issues was ongoing because by the time the external directors were appointed to the Australian ftx entities," the spokesman added.
Read More: The Collapse of the FTX Empire
