U.S. Treasury Secretary Janet Yellen is calling for cryptocurrency regulations after the sudden implosion of crypto exchange FTX.
Yellen told Bloomberg News on Saturday that the FTX collapse “shows the weaknesses of this entire sector.”
Former FTX CEO Sam Bankman-Fried, known as SBF, secretly moved billions in customer holdings to trading company Alameda Research, per reports.
The company filed for bankruptcy on Friday, and at least $1 billion in customer funds has gone missing, per reports.
“In other regulated exchanges, you would have segregation of customer assets,” Yellen said. Moving customer funds that way “wouldnt be something thats allowed.”
