Revelations about the failed cryptocurrency exchange FTX's inroads into the banking system raise important questions about how limited the crypto crash really is.

The bankrupt cryptocurrency lender BlockFi will try to collect about $680 million it is owed by a part of Sam Bankman-Fried's failed crypto empire, a lawyer told the federal judge overseeing BlockFi's insolvency case.

Advisors overseeing the group's ruins have more broadly pointed to a potential commingling of digital assets, raising concerns about misuse of customer funds and making ties between the two firms a likely focus for regulators and investigators probing the collapse.

John Williams, the president of the Federal Reserve Bank of New York, praised the Fed's new guidelines for granting fintechs and other nonbanks access to the payment system. He also echoed calls for new rules to govern stablecoins and cryptocurrencies.

A blueprint for a shared ledger for digital money would include central bank digital currencies, bank deposits and e-money from companies like PayPal — but not unsupervised cryptocurrencies.

The cryptocurrency exchange Kraken has agreed to pay a little over $360,000 to settle allegations that it violated U.S. sanctions against Iran.

BlockFi filed for bankruptcy, the latest crypto firm to collapse in the wake of the crypto exchange FTX's rapid downfall. 

Sens. Elizabeth Warren and Sheldon Whitehouse, both Democrats, have asked the Justice Department not to pull any punches as it investigates and seeks to hold accountable the executives at FTX who contributed to the crypto company's demise.

The digital-asset brokerage Genesis is struggling to raise fresh cash for its lending unit, and it's warning potential investors that it may need to file for bankruptcy if its efforts fail, according to people with knowledge of the matter.