nightcap crypto sam bankman fried 16x9
How common are Ponzi schemes in crypto? Crypto billionaire Sam Bankman-Fried weighs in
03:59 - Source: CNN Business
New York CNN  — 

Authorities in The Bahamas are investigating potential criminal misconduct surrounding the stunning implosion of crypto exchange FTX, authorities said on Sunday.

In a statement, the Royal Bahamas Police Force confirmed the investigation into FTX, which is headquartered in The Bahamas.

“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,” the statement said.

It’s not clear which particular aspect of the swift collapse of FTX authorities are investigating.

Previously one of the most trusted brands in crypto, FTX filed for bankruptcy on Friday and announced the resignation of Sam Bankman-Fried, its 30-year-old CEO who has lost a fortune in the past week.

Neither FTX nor a lawyer representing Bankman-Fried responded to requests for comment on Sunday in response to the investigation from authorities in The Bahamas.

FTX moved its headquarters to The Bahamas last year, with Bankman-Fried hailing it at the time as “one of the few places to set up a comprehensive framework for crypto.”

News of the investigation comes a day after FTX said it is investigating whether crypto assets were stolen. A crypto risk management firm said the assets could be worth almost $500 million.