Monday, June 24, 2024

Bahamas reportedly requested SBF to mint new coin after FTX collapse

by Jeremy

The Bahamas authorities reportedly labored with former FTX CEO Sam Bankman-Fried to concern a brand new cryptocurrency managed by native officers.

Following the FTX collapse in November, Bahamas authorities officers reportedly requested Bankman-Fried to mint new digital property price “a whole lot of thousands and thousands of {dollars},” legal professionals for FTX stated in a court docket submitting, Bloomberg reported on Dec. 12. The authorities additionally reportedly requested the previous FTX CEO to switch the brand new tokens to the management of island officers.

The report additionally means that Bahamas officers tried to assist Bankman-Fried regain entry to key pc programs of the now-defunct FTX buying and selling platform. In response to American legal professionals, Bahamas officers have been “answerable for directing unauthorized entry” to FTX programs in an effort to take over management of digital property beneath the supervision of a U.S. court docket.

John J. Ray III, FTX’s new CEO and restructuring skilled, reportedly watched as somebody minted new cash whereas he and his group tried to get management of FTX’s pc programs, the report notes.

The legal professionals’ claims additional escalate the battle between FTX restructuring executives in america and officers within the Bahamas. In response to U.S. legal professionals, liquidators within the Bahamas requested a U.S. decide for entry to FTX knowledge managed by their American counterparts, together with buying and selling knowledge, e mail data and different info.

“It’s a request for dwell, dynamic entry that will be offered instantly to the federal government of the Bahamas and to Messrs,” the legal professionals reportedly wrote in a court docket submitting on Tuesday.

So as to help their accusations of alleged cooperation between Bahamas authorities and SBF, the American legal professionals talked about that SBF opened withdrawals for all Bahamian purchasers. On Nov. 10, only a day earlier than FTX filed for chapter, the agency stated that it began to facilitate withdrawals of Bahamian funds, citing compliance with native laws. The occasion resulted in thousands and thousands of {dollars} price of cryptocurrency leaving the change.

Associated: Hours earlier than his arrest, SBF denied being a part of ‘Wirefraud’ chat group

Whereas the brand new report brings extra allegations of shut ties between FTX and authorities officers within the Bahamas, different stories additionally recommend that SBF had connections with the U.S. authorities as effectively. In response to some stories, SBF spent about $40 million on supporting Democrats throughout the 2021–2022 political cycle. Tesla CEO Elon Musk speculated that the quantity that SBF truly donated to Democratic candidates was over $1 billion.

The information comes shortly after SBF expressed curiosity in forming a brand new venture in an effort to repay as much as $50 billion to FTX’s collectors. The FTX founder was subsequently arrested within the Bahamas on Dec. 12.