Bahamian police, cryptocurrency It said it was working with the Bahamas Securities Commission to investigate whether there was any criminal misconduct in the collapse of its stock market, FTX.
Bahamian Authorities Investigating FTX
“In light of the global collapse of FTX and the temporary liquidation of FTX Digital Markets Ltd, a team of financial investigators from the Financial Crimes Investigation Branch is with the Bahamas Securities Commission to investigate any criminal misconduct,” a police spokesperson said on Sunday. It works closely,” he said.
FTX filed for bankruptcy in one of the biggest-profile crypto crashes on Friday, after investors rushed to withdraw $6 billion from the platform in just 72 hours and rival exchange Binance abandoned a proposed bailout.
FTX’s newly appointed CEO, John J. Ray III, said Saturday that the company is working with law enforcement and regulators to mitigate the problem and is “making every effort to secure all assets, wherever they may be.”
The whereabouts of Bankman-Fried, who lives in the Bahamas, was also the subject of speculation, and on Twitter he denied rumors that he was flying to South America. Asked by Reuters on Saturday if he had flown to Argentina, he replied with a text message: “No”. He told Reuters he was in the Bahamas.
Sources told Reuters on Friday that at least $1 billion in client funds disappeared from the platform during the turmoil at FTX. Sources claimed that Bankman-Fried transferred $10 billion of client funds to his own trading company, Alameda Research.
*Not investment advice.
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