FTX Bankruptcy Is Under Criminal Investigation

After FTX, an established crypto exchange, imploded, possible criminal misconduct is on the table.

FTX Bankruptcy Is Under Criminal Investigation

According to an official statement, the Royal Bahamas Police Force confirmed that an investigation has been initiated into FTX, which has its headquarters 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 if any criminal misconduct occurred,” the statement said.

Authorities are unsure of which particular aspect of the collapse of FTX they are investigating.

On Friday, FTX, formerly one of the most trusted crypto brands, filed for bankruptcy and announced the resignation of Sam Bankman-Fried, its 30-year-old CEO.

In response to the investigation conducted by authorities in The Bahamas, neither FTX nor a lawyer for Bankman-Fried responded to requests for comment on Sunday.

Bankman-Fried described The Bahamas at the time as "one of the few places where a comprehensive framework for cryptography can be established." FTX shifted its headquarters to The Bahamas last year.

The announcement of the investigation follows FTX's announcement that it is investigating whether crypto assets have been stolen. According to a crypto risk management firm, the assets may be worth almost $500 million.

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