• The US Securities and Exchange Commission is asking financial firms what diligence policies and procedures they have in place regarding FTX investments.
• New York Attorney General Letitia James has sued Celsius Network co-founder Alex Mashinsky for allegedly defrauding investors out of billions of dollars of digital currency.
• European Central Bank executive Fabio Panetta said that cryptoassets should be regulated under online gambling laws.

The US Securities and Exchange Commission (SEC) is seeking information on the due diligence policies and procedures financial firms have in place when it comes to investing in crypto-asset platform FTX. This inquiry comes as two sources familiar with the inquiry have revealed to Reuters. The SEC wants to know if the firms followed the due diligence policies they have when they chose to invest in FTX.

Meanwhile, New York Attorney General Letitia James has taken legal action against Celsius Network co-founder Alex Mashinsky. According to the Wall Street Journal, the lawsuit filed by James alleges that Mashinsky misled investors about the financial condition of the company and concealed its dire situation after losing hundreds of millions of dollars in risky investments. The Attorney General claims that Mashinsky falsely claimed the crypto lender was safer than a bank and only lent assets to credible entities.

European Central Bank executive Fabio Panetta has also weighed in on cryptoassets and believes they should be regulated under online gambling laws. In a statement, Panetta said that as an investment, cryptos lack any intrinsic value and are essentially a gamble disguised as an investment asset. He went on to say that investors buy them with the sole objective of selling them on at a higher price.

The US Securities and Exchange Commission is currently taking steps to gain more insight into the due diligence policies and procedures employed by financial firms when it comes to investing in FTX, a crypto-asset platform. This inquiry is being conducted to ensure investors are adequately protected and that the firms involved in FTX investments are following the necessary protocols. Meanwhile, New York Attorney General Letitia James is suing Celsius Network co-founder Alex Mashinsky, alleging that he defrauded investors out of billions of dollars of digital currency. The lawsuit also claims Mashinsky misled investors about the soundness of the firm’s financial condition and concealed its dire situation after risky investments had caused losses.

In addition, European Central Bank executive Fabio Panetta has expressed his opinion on the matter, stating that cryptoassets should be regulated under online gambling laws. Panetta believes that as an investment, these assets lack any intrinsic value and are essentially a gamble disguised as an investment asset. Investors purchase these assets with the sole objective of selling them on at a higher price.

Overall, these recent events have highlighted the importance of due diligence policies and procedures when it comes to investing in cryptoassets. It is essential that investors are adequately protected and that the firms involved in crypto investments are following the necessary protocols. As such, the US Securities and Exchange Commission is taking steps to gain more insight into the due diligence policies and procedures employed by financial firms when it comes to FTX investments. Additionally, New York Attorney General Letitia James is taking legal action against Celsius Network co-founder Alex Mashinsky for allegedly defrauding investors out of billions of dollars of digital currency. Finally, European Central Bank executive Fabio Panetta believes that cryptoassets should be regulated under online gambling laws.