SBF allegedly worked with Bahamas government to mint millions of FTX tokens News ▸ FTX ▸ Bankruptcy
SBF allegedly worked with Bahamas government to mint millions of FTX tokens
FTX's legal team claimed that the Bahamas authority worked closely with SBF to mint FTX tokens worth millions of dollars, which were transferred to the government on Nov. 12.
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Updated: Aug. 22, 2023 at 2:25 am UTC
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Lawyers representing FTX in the bankruptcy process alleged that the government of the Bahamas worked closely with Sam Bankman-Fried to mint millions of tokens, post-FTX collapse, according to Fortune.
Following FTX’s bankruptcy on Nov. 11, the Securities Commission of Bahamas took control of the assets in FTX’s custody for “safekeeping.”
FTX’s legal team claimed that the Bahamas authority worked with SBF to mint FTX tokens worth millions of dollars, which were transferred to the government on Nov. 12.
The lawyers added that SBF had promised Bahamas Attorney General Ryan Pinder that he would allow local customers to withdraw their funds. As a result, about 1,500 “Bahamians” reportedly withdrew over $100 million, after the exchange filed for bankruptcy.
As per Fortune, lawyers representing FTX in the U.S., FTX liquidators, and the Bahamas authority are contending for control over FTX data.
FTX’s legal team claimed that granting access to the Bahamas authority might lead to more losses for the bankrupt exchange.
According to the lawyers:
“The last time these individuals had access to the Debtors’ systems, they used such access to transfer assets belonging to the Debtors.”
FTX CEO John Ray had earlier argued the Bahamas authority’s control of the exchange’s assets was authorized and inappropriate.
SBF to face trials in the U.S.
Earlier on Dec. 13, the Bahamas authority arrested SBF at the request of the U.S. government. Expectedly, SBF will be extradited to face trials in the U.S.
In addition, the Securities and Exchange Commission (SEC) confirmed it was charging SBF for defrauding investors of up to $1.8 billion.
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Posted In: FTX, Bankruptcy
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Christian Nwobodo
Christian is a crypto-curious nerd who loves to investigate how protocols work under the hood. Christian is interested in DeFi protocol research, token economics, and on-chain analytics.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.
