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Investigation Into Apparent Failure Crypto Asset Platform FTX

Nov 10, 2022

The Department of Financial Protection and Innovation (DFPI) is investigating the apparent failure of crypto asset platform FTX. 

We encourage consumers to be aware of the risks of investing in volatile crypto assets. Consumers and investors must be aware that crypto assets are high-risk investments and should not expect to be reimbursed for any losses.

The Department warns California consumers and investors that many crypto asset providers may not have adequately disclosed risks customers face when they deposit crypto assets onto these platforms. Crypto asset providers are not governed by the same rules and protections as banks and credit unions, which are required to have deposit insurance.

The DFPI takes its oversight responsibility very seriously. We expect any person offering securities, loans, or other financial services in California to comply with our financial laws.

If you have been impacted by these events surrounding FTX, please contact the DFPI online ( or call toll-free at (866) 275-2677.

The DFPI is the agency responsible for administering the state’s lending and banking laws, the recent California Consumer Financial Protection Law, and the state’s securities laws, which govern broker dealers, investment advisers, and commodities.

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Last updated: Dec 8, 2022 @ 4:15 pm