The Securities and Exchange Commission (SEC) has notified U.S.-listed companies to provide more details regarding any potential exposure to insolvent crypto companies. The FTX fiasco and its aftermath have endangered the survival of many smaller crypto firms, and billions of dollars of customers’ money invested in digital assets are at stake. The SEC seeks to get to the bottom of how the FTX collapse may have impacted other companies and the severity of the damage, either directly or indirectly. Most importantly, companies are at higher risk from counterparty transactions, in which the said company may have owned, held, or issued crypto assets on behalf of third parties.
