The Bahamian police stated they’re working with the Bahamas Securities Commission to analyze whether or not there was any felony misconduct within the collapse of the crypto trade 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 stated in a press release Sunday. FTX is registered within the Bahamas.
FTX co-founder Sam Bankman-Fried was interviewed by Bahamian police and regulators on Saturday, in accordance with an individual aware of the matter. In the Bahamas, legislation enforcement inquiries don’t essentially imply somebody might be arrested or charged with a criminal offense.
On Friday, greater than 130 entities tied to FTX.com, FTX U.S. and buying and selling agency Alameda Research Ltd. have been listed in chapter filings at federal court docket in Delaware. Bankman-Fried resigned as chief govt officer of FTX Group as a part of the submitting.
The U.S. Securities and Exchange Commission is investigating Bankman-Fried for potential violations of securities guidelines because the regulator deepens its probe into his crumbling FTX crypto empire, an individual aware of the matter stated final week. The Justice Department can also be trying into the scenario.
U.S. Treasury Secretary Janet Yellen stated the implosion of Sam Bankman-Fried’s FTX crypto empire strengthened her view that the marketplace for digital belongings required “very careful regulation.”
“It shows the weaknesses of this entire sector,” Yellen stated in an interview with Bloomberg News over the weekend.
Yellen, who spoke on her solution to the Group of 20 leaders summit in Bali, Indonesia, contrasted the case with developed monetary markets, the place guidelines higher defend traders.
“In other regulated exchanges, you would have segregation of customer assets,” Yellen stated. “The notion you could use the deposits of customers of an exchange and lend them to a separate enterprise that you control to do leveraged, risky investments — that wouldn’t be something that’s allowed.”
Source: www.bostonherald.com”