Investigation against FTX in the Bahamas: Is there a crime?

Based on an announcement issued by the Bahamas Police to Reuters on November 13, monetary criminals and securities regulators within the Bahamas are presently investigating doable prison wrongdoing in opposition to cryptocurrency alternate FTX in reference to its chapter.

The Royal Bahamas Police said:

“In mild of the collapse of FTX and the preliminary liquidation of FTX Digital Markets Ltd., a staff of investigators from the Monetary Crimes Division is working intently with the Bahamas Securities Fee to research whether or not there was any prison wrongdoing.”

The investigation got here after regulators publicly denied allegations made by FTX over the weekend. On November 11, FTX tweeted that it had been ordered by “Bahamas Headquarters Laws and Regulators” to permit money withdrawals in The Bahamas. A day later, the SEC denied instructing or authorizing FTX to prioritize withdrawals for purchasers within the nation.

within the assertion on the local securities regulator’s Twitter page It has been stated:

“The Fee needs to tell that it didn’t direct, authorize or recommend that FTX Digital Markets, Ltd. prioritize withdrawals for Bahamian purchasers.”

The US Division of Justice and the Securities and Change Fee are additionally investigating the collapse of the cryptocurrency alternate, in keeping with a Wall Road Journal report on November 9. The US state of California additionally introduced on November 10 that it will launch an investigation into the “obvious failure” of the alternate.

As Cointelegraph reported, former FTX CEO Sam Bankman-Fried, co-founder Gary Wang, and CTO Nishad Singh are within the Bahamas and are being “watched” by native authorities.

About 130 firms within the FTX group, together with FTX Buying and selling, FTX US, West Realm Shires Providers and Alameda Analysis, filed for chapter within the US on November 11. Bankman-Fried additionally stepped down as CEO of FTX and was succeeded by John Ray. Zane Tackett, former head of the institutional arm of FTX, confirmed on Twitter that the alternate presently has $8.8 billion in liabilities.

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