FTX Beneath Investigation within the Bahamas After Chapter Declaration

FTX, which filed for Chapter 11 chapter safety within the US on Friday, is now beneath investigation in its headquarters within the Bahamas. In an announcement, the Royal Bahamas Police Power confirmed the investigation into FTX. That stated, it isn’t clear which explicit facet of the swift collapse of FTX authorities are investigating. FTX moved its headquarters to The Bahamas final yr, with Sam Bankman-Fried hailing it on the time as “one of many few locations to arrange a complete framework for crypto.”

“In gentle of the collapse of FTX globally and the provisional liquidations of FTX Digital Markets Ltd., a workforce of monetary investigators from the Monetary Crimes Investigation Department are working carefully with the Bahamas Securities Fee to analyze if any prison misconduct occurred,” the Royal Bahamas Police Power stated in a launch posted to Twitter Sunday.

The assertion shared on the Securities Fee of The Bahamas’ Twitter page stated, “The Fee needs to advise that it has not directed, authorised or instructed to FTX Digital Markets, Ltd. the prioritization of withdrawals for Bahamian purchasers.”

FTX Digital Markets is a subsidiary of FTX Buying and selling and is licensed and controlled within the Bahamas.

FTX, one of many world’s largest crypto exchanges, can be going through an investigation by the U.S. Securities and Trade Fee (SEC) and Commodity Futures Buying and selling Fee (CFTC) into its mismanagement of buyer funds and relationships with FTX.US and Alameda Analysis.

This weekend, there was elevated hypothesis on the whereabouts of now-former CEO Sam Bankman-Fried, who told Reuters on Saturday he was within the Bahamas. A subsequent report via CoinTelegraph stated he and two former FTX associates have been “beneath supervision” by Bahamian authorities.

The Bahamas has welcomed crypto companies, and in 2020 grew to become one of many first nations to launch its personal central financial institution digital forex (CBDC), a digital, government-controlled model of its native greenback.