Bahamian police confirms FTX criminal probe as investigators from Financial Crimes Investigation Branch work with regulators

November 13, 2022, 8:49 PM UTC
FTX Arena
FTX Arena in Miami.
Matias J. Ocner/Miami Herald/Tribune News Service via Getty Images

The Bahamian police said they’re working with the Bahamas Securities Commission to investigate whether there was any criminal misconduct in the collapse of the crypto exchange FTX. 

“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,” a police spokesperson said in a statement Sunday. FTX is registered in the Bahamas.

FTX cofounder Sam Bankman-Fried was interviewed by Bahamian police and regulators on Saturday, according to a person familiar with the matter. In the Bahamas, law-enforcement inquiries don’t necessarily mean someone will be arrested or charged with a crime. 

On Friday, more than 130 entities tied to FTX.com, FTX US, and trading firm Alameda Research Ltd. were listed in bankruptcy filings at federal court in Delaware. Bankman-Fried resigned as chief executive officer of FTX Group as part of the filing.

The U.S. Securities and Exchange Commission is investigating Bankman-Fried for potential violations of securities rules as the regulator deepens its probe into his crumbling FTX crypto empire, a person familiar with the matter said last week. The Justice Department is also looking into the situation.

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