FTX also saw its regulatory status as a way of luring new capital from major investors.
Bankman-Fried did not respond to a request for comment on questions about FTX's regulatory strategy.
Those representations, while nominally true, don't cover their activity," the person said.
Some firms were offering interest on deposits, which the SEC said could make them securities and should be registered under its rules.
In the list of its regulatory interactions, FTX noted that the inquiry was looking at whether those assets were being "lent out or otherwise used for operational purposes."
In the May document, FTX said the SEC's exam staff, which scrutinizes market practices that could present a risk to investors, was concerned about a different matter: a rewards program that it offered to customers, under which it paid interest on crypto deposits.
Source: NDTV
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