Sam Bankman-Fried has resigned as CEO of crypto exchange FTX.

The Bahamas police said it’s investigating potential “criminal misconduct” at FTX.
FTX filed for Chapter 11 bankruptcy on Friday and its founder Sam Bankman-Fried has resigned as CEO.
FTX has been embroiled in a dramatic liquidity crisis since last week.

The Bahamas police is investigating Sam Bankman-Fried’s beleaguered and now bankrupt crypto exchange FTX for “criminal misconduct,” the law enforcement authority said in a Sunday statement.

The Bahamian police added that its financial crime investigation branch is “working closely” with the Bahamas securities regulator in the investigation.

—Royal Bahamas Police Force (@RBPFPolice) November 13, 2022

 

Last Thursday, the Securities Commission of the Bahamas’ froze the assets of an FTX subsidiary, compounding its financial woes. The securities regulator said at the time it was aware of statements suggesting FTX mishandled, mismanaged, or transferred the assets of clients to Alameda Research, Bankman-Fried’s crypto trading firm. 

The securities regulator did not specify its concerns but sources told Reuters Bankman-Fried had transferred $4 billion from FTX to Alameda earlier in 2022 without telling anyone, the news agency reported last Thursday. 

The US Securities and Exchange Commission and the Department of Justice have also opened investigations into the collapse of FTX. Bankman-Fried was also reportedly interviewed by the Bahamian police on Saturday. 

FTX’s progressively worse week ended in a petition for bankruptcy

It’s been a dramatic and progressively worse week for Bankman-Fried. It started with a very public feud with Binance CEO Changpeng “CZ” Zhao the weekend of November 5, and ended with FTX filing for Chapter 11 bankruptcy  on Friday and Bankman-Fried resigning as CEO, after a crippling liquidity crisis brought down the exchange which was once valued at $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 specify his concerns at the time, but a November 2 CoinDesk report had been stoking market fears about FTX’s liquidity position.

Bankman-Fried then hit back at Zhao on November 7, tweeting: “a competitor is trying to go after us with false rumors,” per media reports including Bloomberg and Reuters.

The drama weighed on market sentiment, sparking a rush for withdrawals. Around $6 billion was withdrawn …read more

Source:: Business Insider

      

Bahamas law enforcement is investigating criminal misconduct at FTX, the crypto exchange that was once valued at $32 billion and is now suing for bankruptcy

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