FTX has been investigated for possible “criminal misconduct” by financial crime investigators: Bahamas Police
Bahamian police said they are working with the Bahamas Securities Commission to investigate whether there was criminal misconduct in the collapse of crypto exchange FTX.
“Given the global collapse of FTX and the temporary liquidation of FTX Digital Markets Ltd. A team of financial investigators from the Financial Crimes Investigation Branch is working closely with the Bahamas Securities Commission to investigate whether there has been any criminal wrongdoing,” a police spokesman said in a statement Sunday. FTX is registered in the Bahamas.
According to a person familiar with the matter, FTX co-founder Sam Bankman-Fried was questioned by Bahamian police and regulators on Saturday. In the Bahamas, a law enforcement investigation does not necessarily mean that someone will be arrested or charged with a crime.
On Friday, more than 130 companies linked to FTX.com, FTX US and trading firm Alameda Research Ltd. are listed in the bankruptcy filings in the federal court in Delaware. Bankman-Fried resigned as chief executive officer of FTX Group as part of the filing.
The US Securities and Exchange Commission is investigating Bankman-Fried for possible securities rule violations as the regulator deepens its investigation into his crumbling FTX crypto empire, a person familiar with the matter said last week. The Ministry of Justice is also examining the situation.
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