An investigation of possible criminal misconduct over the insolvency of FTX is underway by financial investigators and the Bahamas securities regulators.
The investigation comes after the regulator publicly denied FTX allegations over the weekend. FTX tweeted that it was instructed by Bahamian HQ’s regulation and regulators to facilitate the withdrawal of Bahamian funds. One day later, the securities commission denied instructing or authorizing FTX to prioritize withdrawals for clients in the country.
A report from The Wall Street Journal suggested that the U.S. Department of Justice and the SEC are also investigating the collapse of the crypto exchange. The Department of Financial Protection and Innovation in the state of California announced on Nov. 10 opening an investigation regarding the “apparent failure” of the exchange.
FTX former CEO Sam Bankman-Fried, co-founder Gary Wang and director of engineering Nishad Singh are understood to be in the Bahamas and are under supervision by the local authorities.
