Bankrupt Crypto Exchange FTX Under Criminal Investigation in the Bahamas

New York

Bahamian authorities are investigating possible criminal misconduct surrounding the staggering implosion of crypto exchange FTX, authorities said on Sunday.

In a statement, the Royal Bahamas Police confirmed the investigation into FTX, which is headquartered in the Bahamas.

“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 any criminal misconduct,” the statement read. said.

It is unclear what particular aspect of the rapid collapse FTX authorities are investigating.

Previously one of the most trusted brands in crypto, FTX filed for bankruptcy on Friday and announced the resignation of Sam Bankman-Fried, its 30-year-old CEO who lost a fortune last week.

Neither FTX nor an attorney representing Bankman-Fried responded to requests for comment on Sunday in response to Bahamian authorities’ investigation.

FTX moved its headquarters to the Bahamas last year, with Bankman-Fried saluting at the time as “one of the few places to put in place a comprehensive framework for crypto”.

News of the investigation comes a day after FTX announced it was investigating the theft of crypto assets. A crypto risk management firm said the assets could be worth close to $500 million.


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