FTX Under Investigation in Bahamas After Bankruptcy Declaration
FTX, which filed for Chapter 11 bankruptcy protection in the US on Friday, is now being investigated at its headquarters in the Bahamas. In a statement, the Royal Bahamas Police Force confirmed the investigation into FTX. That said, it’s not clear what part of the quick fall FTX authorities are investigating. FTX moved its headquarters to the Bahamas last year, with Sam Bankman-Fried praising it at the time as “one of the few places to set up a complete crypto framework.”
“Due to the global collapse of FTX and the temporary liquidation of FTX Digital Markets Ltd., the Financial Crimes Investigation Branch is working closely with the Bahamas Securities Commission to investigate possible criminal misconduct,” the Royal Bahamas Police Force said in a statement. posted on Twitter on Sunday.
The statement was shared with the Bahamas’ Securities Commission. The Twitter page said“The Commission wishes to state that it did not direct, authorize or recommend to FTX Digital Markets, Ltd. to prioritize the withdrawal of Bahamian clients.”
FTX Digital Markets is a division of FTX Trading and is licensed and regulated in the Bahamas.
FTX, one of the largest crypto exchanges in the world, is also facing investigations by the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) regarding its mismanagement of client funds and its relationship with FTX.US and and Alameda Research.
This weekend, speculation mounted about the whereabouts of former CEO Sam Bankman-Fried. who told Reuters on Saturday he was in the Bahamas. A the following report on Cointelegraph he said he and former FTX associates are “under surveillance” by Bahamian authorities.
The Bahamas has embraced crypto businesses, and in 2020 became one of the first countries to issue its own central bank digital currency (CBDC), a digital, government-controlled version of its traditional dollar.