After the collapse of the cryptocurrency exchange FTX, financial investigators and security regulators from the Bahamas are looking into possible criminal misconduct. This is in regard to its insolvency of FTX, according to a statement from the Royal Bahamas Police Force.
Beforehand, FTX claimed that they were asked to put Bahamian clients first, in terms of withdrawals. Regulators denied having said this.
In fact, The Securities Commission of The Bahamas (SCB) already froze the assets of Bankman-Fried. The SCB also stated that they were aware that client assets were mishandled or transferred to Alameda Research, which was founded by the former FTX CEO.
Alameda Research's balance sheet was leaked, showing huge amounts of the FTX token, which may have eventually led to the liquidity crisis that started FTX's collapse.
FTX Under the Microscope
Authorities from the Bahamas are not the only ones looking into FTX. As mentioned in Coin Telegraph, the now-bankrupt firm is also being investigated by the US Department of Justice. This goes for the Securities and Exchange Commission, and the Department of Financial Protection and Innovation (DFPI).
Sam Bankman-Fried, the former FTX CEO, along with co-founder Gary Wang and director of engineering Nishad Singh, is reportedly in the Bahamas. A source told Coin Telegraph that the three are attempting to flee to Dubai. If that's the case, it will be difficult for them to do so, as they are being closely watched by Bahamian authorities.
If they do try to leave the Bahamas, they will get detained at the airport and will be sent to the US. This is according to a community member coin bureau with a source in the US government. This could be due to the mutual legal assistance treaty (MLAT), signed by both the UAE and the US, which was posted on Justice.gov.
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Rumors Surrounding the Former CEO
There was a theory based on a Twitter Space Discussion hosted by Mario Nawfal, that there were witnesses who saw Bankman-Fried with authorities in a "locked space." The place in question is Albany Tower, which is a luxury resort found in New Providence in the Bahamas.
There were many other rumors about the former FTX CEO, like how he was arrested on the tarmac at The Bahamas Airport, or that he flew to Buenos Aires, which was claimed by users from Twitter by tracking the coordinates of his private jet.
However, Bankman-Fried denied that he flew to Argentina, and said that he was still in the Bahamas. Unverified sources also say that Bankman-Fried was selling equity to the firm's employees, with a 50% discount back in spring.
One of the most concerning, perhaps, is that the employees of FTX are trying to sell the company's assets while the CEO isn't present. There are posts on social media, claiming that a lot of the employees invested their life savings in the firm since they trusted Bankman-Fried. The said employees were worried that the former CEO may have sent their funds to Alameda research.
