FTX downfall is said to be probed by Manhattan U.S. attorney's office

Prosecutors working with the U.S. Attorney's office for the Southern District of New York have opened a probe into the meltdown of cryptocurrency exchange FTX, Reuters reported Monday, citing a person familiar with the matter. The investigation comes just days after Sam Bankman-Fried's FTX filed for Chapter 11 bankruptcy protection in the face of its multibillion-dollar shortfall and its inability to meet a huge amount of customer withdrawals. Like many industry experts suggested, FTX's demise has triggered increased regulatory scrutiny across the wider crypto ecosystem, which could be seen as a positive development. That being said, the latest blow to the cryptoverse pushed some crypto exchanges to share proof of their reserves to increase transparency; Crypto.com did just that . Previously, (Nov. 9) FTX came under SEC, CFTC investigations over its mishandling of client funds as well as its financial relationship with sister companies FTX US and Alameda Research .