- The Bahamas police indicated that it is investigating any “criminal misconduct” at FTX.
- Friday saw FTX file for Chapter 11 bankruptcy. Sam Bankman Fried, its founder, has resigned from his position as CEO.
- Since last week, FTX is in a serious liquidity crisis.
The Bahamas police is investigating Sam Bankman Fried’s now bankrupt crypto exchange FTX, according to a Sunday statement.
Bahamian police This was addedThe financial crime investigation section of the bank is working closely with the Bahamas securities regulator.
—Royal Bahamas Police Force (@RBPFPolice) November 13, 2022
Last Thursday, Securities Commission of the BahamasThe assets of a FTX subsidiary were frozen. This added to the company’s financial woes. According to the securities regulator, it was aware at the time of statements that FTX had mishandled, mismanaged or transferred clients’ assets to Alameda Research by Bankman-Fried’s cryptocurrency trading firm.
Although the securities regulator didn’t specify its concerns, Sources tell Reuters Bankman-FriedThe news agency reported that $4 billion had been transferred from FTX to Alameda in 2022, without anyone knowing.
The US Securities and Exchange Commission and Department of Justice are also involved. Initiated investigationsinto the collapse in FTX. Bankman-Fried also Reports indicate that they were interviewedBy the Bahamian Police on Saturday.
FTX’s progressively worsening week ended in a petition to bankruptcy
Bankman-Fried’s week has been dramatic and worsening. It began with a public feud with Changpeng Zhao, Binance CEOThe weekend of November 5 and 6 ended with FTX file for Chapter 11 bankruptcy Friday saw Bankman-Fried, the CEO, resign after a liquidity crisis that decimated the exchange. The exchange was once valued at approximately $18 billion. $32 billion.
Two weekends ago, Zhao tweeted that Binance would be liquidating all its FTT tokens — a crypto token native to FTX — due to “recent revelations.” Zhao didn’t mention his concerns at the moment, but a November 2 CoinDesk ReportFTX’s liquidity position was a source of market fear.
On November 7, Bankman-Fried retorted at Zhao, tweeting: “A competitor is trying to chase us with false rumors,” according to media reports. Bloomberg and Reuters.
The drama weighed on market sentiment, sparking a rush for withdrawals. Around $6 billion was withdrawn from FTX in the 72 hours preceding prior to November 8, Reuters reported, citing a message Bankman-Fried sent to staff.
As the drama unfurled in public, Bankman-FriedAnd Zhao shocked the world by announcing on Tuesday that Binance was to acquire FTX. Zhao caused shockwaves once more when he announced that Binance would acquire FTX. DeletedThis is the deal Citing issues “beyond our control or ability to help.”
FTX filed for bankruptcy two days later, on Friday. Bankman-FriedInvestors were advised that the firm could face bankruptcy if it didn’t receive emergency funding to address a possible $8 billion shortfall. Bloomberg reported.
On Saturday, the troubles at the exchange continued when John Ray, chief restructuring officer and CEO for FTX, was arrested. After the incident, they began to investigate an “unauthorized access” to assets. Financial Times reported funds worth hundreds of millions of dollars had been withdrawn in a potential hack, citing analysts.
Ray’s statement is RetweetedOfficial Twitter account of FTX
Blockchain analytics firm EllipticIt said that it believed $477 million worth of crypto assets had been stolen from FTX within the last 24 hours after the bankruptcy filing.
Insider requested information from FTX but the company did not immediately reply.
The market turmoil at FTX has had a negative impact on crypto markets with Bitcoin dropping 23% over the past seven day, while ethereum dropped about 25% during the same period according to CoinMarketCap.
