Bahamas Authorities Investigate The Fall Of FTX
The Bahamas police has said that it is investigating Sam Bankman-Fried’s beleaguered and now bankrupt crypto exchange FTX for criminal misconduct.
By Anna B Kiwanuka
The whole cryptocurrency sector is being impacted by the fall of the FTX enterprise. Users, executives, investors, and staff all suffered greatly as a result of the exchange’s breakdown. During this period, the market was quite volatile. Even Bitcoin (BTC), the most popular cryptocurrency, dropped to the $15,000 area.
The fall of the cryptocurrency giant was something that no one saw coming. FTX, which was facing liquidity crunches, has now filed for bankruptcy. Sam Bankman-Fried has also resigned as the CEO of the exchange.
As per recent reports, the downfall of the exchange is receiving global attention. The Royal Bahamas Police addressed on Sunday that they are now launching an investigation into FTX’s fall.
As per the statement given by the Royal Bahamas Police, they are looking into the possibility of any criminal misconduct connected with the FTX exchange’s collapse.
The Bahamas police highlighted that “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.”
The issues with FTX don’t end there. A recent exploit at FTX is said to have aggravated the ongoing problems. Telegram administrators alerted users that the FTX website might download Trojans, which could affect their portfolios.
In addition, the exchange experienced unexpected outflows of roughly $600 million just hours after declaring Chapter 11 bankruptcy.
Nevertheless, the collapse of the cryptocurrency giant has definitely alerted global regulators. Many even suggest that this might bring in tighter regulations and speed up the process of inevitable regulation.