Some reports indicate that eight congresspeople, five of whom received donations from FTX, tried to stop the Securities and Exchange Commission from investigating FTX. https://t.co/0HxlRiI6Sy was an offshore exchange not regulated by the SEC. Also important, offshore exchanges must only use authorized dealers. Additional funding to protect investors from offshore exchanges, like subsidized loans, should also be opened up by the regulators. Beyond offshore exchanges, the risk extends to DeFi projects which are borderless by design.

Source: Wall Street Journal December 04, 2022 14:49 UTC