An investigation of doable criminal misconduct over the insolvency of cryptocurrency change FTX is underway by monetary investigators and the Bahamas securities regulators, in keeping with an announcement by the Royal Bahamas Police Force despatched to Reuters on Nov 13.
The Royal Bahamas Police acknowledged:
“In light of the collapse of FTX globally and the provisional liquidation of FTX Digital Markets Ltd., a team of financial investigators from the Financial Crimes Investigation Branch are working closely with the Bahamas Securities Commission to investigate if any criminal misconduct occurred.”
The investigation comes after the regulator publicly denied FTX allegations over the weekend. On Nov. 11, FTX tweeted that it was instructed by “Bahamian HQ’s regulation and regulators” to facilitate the withdrawal of Bahamian funds. One day later, the securities fee denied instructing or authorizing FTX to prioritize withdrawals for shoppers in the nation.
The assertion shared on the SCB’s Twitter web page acknowledged:
“The Commission wishes to advise that it has not directed, authorized or suggested to FTX Digital Markets, Ltd. the prioritization of withdrawals for Bahamian clients.”
A report from The Wall Street Journal on Nov. 9 prompt that the U.S. Department of Justice and the Securities and Exchange Commission are additionally investigating the collapse of the crypto change. Also, the Department of Financial Protection and Innovation (DFPI) in the state of California introduced on Nov. 10 opening an investigation relating to the “apparent failure” of the change.
As reported by Cointelegraph, FTX former CEO Sam Bankman-Fried, co-founder Gary Wang and director of engineering Nishad Singh are understood to be in the Bahamas and are “under supervision” by the native authorities.
Roughly 130 firms in FTX Group — together with FTX Trading, FTX US, under West Realm Shires Services, and Alameda Research — had began proceedings to file for chapter in the United States on Nov. 11. Bankman-Fried has additionally resigned from his place as FTX’S CEO and will likely be succeeded by John Ray. Zane Tackett, the former head of the institutional arm at FTX, confirmed on Twitter that the change at present has liabilities price $8.8 billion.
Cointelegraph has reached out to FTX and the Bahamas Police Force for feedback, however has not obtained an instantaneous response.
