FTX described its "robust" security practices and advocated against stricter safeguards on client assets in a letter to the Australian government a little more than five months before collapsed. "Larger more sophisticated groups such as FTX have invested significant sums in developing robust security practices which achieve the necessary levels of security while keeping custody of assets in-house."
"By providing regulatory certainty, consumers can be confident that they are dealing with legitimate businesses and that their consumer rights can be enforced," FTX said in the Australian letter. "Likewise, a clear regulatory regime will provide greater business certainty."