Image source: Yahoo News
FTX has been on thin ice for a few weeks, with the Bahamian Securities Commission taking action.
The headquarters of the crypto exchange in the Bahamas had its assets frozen last Thursday.
Additionally, the Bahamas Securities Commission requires a liquidator.
Local police is now part of the case.
The Royal Bahamas Police Force (RBPF) released a statement Sunday morning saying:
“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.”
A spokesperson for the RBPF has not confirmed whether the new investigation is a direct response to an event on Friday night.
More than $650 in funds left FTX in a series of transfers that FTX US general counsel Ryne Miller says are “unauthorized.”
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FTX moved its headquarters from Hong Kong to the Bahamas in September, where cryptocurrencies are more accepted.
According to Sam Bankman-Fried, the founder of FTX, the Caribbean tax haven had more regulatory clarity than Hong Kong.
He also said the Bahamas is a better place to do business.
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The crypto-friendly country is one of the ideal locations for crypto businesses.
In 2020, it was one of the first countries to launch its own central bank digital currency or CBDCs.
CBDC is the government-controlled digital version of the country’s native dollar.
However, Sam Bankman-Fried lives in the Bahamas and reportedly stays in a mansion with ten friends and colleagues.
Last Saturday, he told Reuters he was still in the Caribbean, ending Crypto Twitter’s rumors that he had flown to Argentina.
According to Bloomberg, Sam Bankman-Fried was questioned by Bahamian police on Saturday evening.
Bahamas police are investigating potential ‘criminal misconduct’ by FTX