FTX under investigation in the Bahamas for possible criminal misconduct

Quick Take

  • Financial investigators are working closely with the Bahamas Securities Commission to investigate if any criminal misconduct occurred, the Royal Bahamas Police Force said.

FTX, which filed for Chapter 11 bankruptcy protection in the U.S. on Friday, is now under investigation in its headquarters of the Bahamas.

"In light of the collapse of FTX globally and the provisional liquidations 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 Royal Bahamas Police Force said in a release posted to Twitter Sunday.

FTX Digital Markets is a subsidiary of FTX Trading and is licensed and regulated in the Bahamas.

FTX, one of the world's largest crypto exchanges, is also facing an investigation by the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) into its mismanagement of customer funds and relationships with FTX.US and Alameda Research.

There has been increased speculation this weekend on the whereabouts of now-former CEO Sam Bankman-Fried, who told Reuters on Saturday he was in the Bahamas. A later report said he and two former FTX associates were “under supervision” by Bahamian authorities.

FTX spent $74 million over the past year buying up residential property around its headquarters, The Block reported Saturday. FTX is known for its communal setup on the island, where teammates work and live.


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