“A team of financial investigators” are currently investigating the now-defunct crypto exchange FTX, the Royal Bahamas Police Force said in a statement shared on Sunday. The police noted that the financial investigators were searching to see if “any criminal misconduct occurred.”
Bahamas Law Enforcement Looks Into FTX Collapse
After the Bahamas securities regulator took action against FTX on Nov. 11, 2022, the country’s Securities Commission updated the public the following day. The regulating entity noted that it did not give permission to FTX to authorize withdrawals for Bahamian customers.
“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,” the Bahamas securities regulator said on Nov. 12. The regulator added:
The [Bahamas Securities Commission] does not condone the preferential treatment of any investor or client of FTX Digital Markets Ltd. or otherwise.
Additionally, on Nov. 13, Reuters reported that the Royal Bahamas Police Force commented on the FTX situation and the police said an investigation was underway. “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 Bahamian police officer told the news outlet.
The news publication reached out to FTX and executives did not “immediately respond to Reuters’ request for a comment.” The news follows FTX Digital Markets Ltd. filing for bankruptcy with Alameda Research and 134 other companies. One company further explained that they were “erroneously included” in FTX’s Chapter 11 filing.
Some have accused Sam Bankman-Fried (SBF) of playing the game “League of Legends, while FTX crumbles around him.” Cointelegraph reported that SBF and members of his inner circle may be under supervision by the local authorities. A flight radar report had shown SBF’s private jet flew to Argentina on Nov. 12.