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FTX faces judicial investigation in the Bahamas



FTX is being investigated by Bahamian regulators and authorities to find out whether the platform has engaged in criminal activities.. The exchange is declaring bankruptcy following a liquidity crisis discovered last week.

Last week the exchange house FTX collapsed overnight following the exchange’s discovery of a liquidity problem.. FTX was the second largest exchange by volume in the entire cryptocurrency ecosystem, but mismanagement led to a collapse that forced management to declare itself in receivership. bankruptcy. At first, Binance had signed a letter of intent to acquire 100 percent of the platform to try to save its users, but the deal fell through after Binance acknowledged that it was unable to resolve the situation.

After discovering the lack of liquidity, FTX suffered a passive flight of users and customers, which also led to the collapse of its token, the TLT.. Within days, the TLT lost its value. $1.5when its average price in recent months was between $22 and $25. The FTT formed part of the exchange’s reserves, causing an even greater liquidity problem.. This series of movements caused FTX to accumulate a deficit of more than 9 billion dollars.

FTX is headquartered for tax purposes in the Bahamas, and following the events, several investigations were opened into whether the platform’s situation and movements complied with the law. The Financial Crimes Investigation Division of the Bahamas, along with the local securities regulator, is investigating whether FTX engaged in criminal conduct.. In a communiqué issued by the Royal Bahamas Police Force reads as follows:

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 is working closely with the Bahamas Securities Commission to investigate whether criminal misconduct may have occurred.

It is known that Bahamian regulators have been monitoring FTX’s situation since last week due to statements by its executives. FTX allowed some unidentified customers to withdraw funds from the platform.based on local regulatory requirements. At the time, withdrawals from the platform had already been restricted due to the collapse of the platform.

Authorities confirmed that at no time did they allow or order FTX to restore withdrawals.. It is suspected that these withdrawals may have been made by management itself to try to save some assets before bankruptcy.

Bahamian regulators and authorities are not the only law enforcement agencies investigating the FTX situation. The U.S. SEC and the country’s Department of Justice are investigating the platform..

Where is the CEO of FTX?

The whereabouts of former CEO Sam Bankman-Fried is also a mystery to the cryptographic community and the world at large.. Bankman-Fried has been credited as one of the main culprits in the collapse of FTX, who along with his management team managed to bring down a multi-billion dollar company in a matter of days.

Since FTX filed for bankruptcy, Bankman-Fried’s whereabouts are unknown. Various sources suggest that he is in the Bahamas.but he has not been arrested and remains at large without restriction. Other sources claim that he and two of his former associates are being held under the supervision of local authorities..

The most daring theories point to the fact that. Bankman-Fried fled after being unable to handle the exchange situation and is now untraceable.. It is suspected that he may have chosen Argentina, or one of the Latin American countries, to hide.

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In the past year, FTX has invested $74 million in acquiring residential properties around its headquarters in the Bahamas. Another possibility is that Bankman-Fried was in one of these, which are still owned by FTX.

Continue reading as Coinbase announced the layoff of more than 60 employeescould be interesting.

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