The Royal Bahamas Police Force is investigating Bankman-Fried's now-bankrupt FTX for possible criminal conduct.
Sam Bankman-Fried, CEO of FTX US Derivatives, will testify before the agriculture committee. The picture was taken by Tom Williams/CQ-Roll Call.
Chrislyn Skippings said in a statement that financial investigators from the Royal Bahamas Police Force are working with the Bahamas Securities Commission to investigate FTX Digital Markets.
The Securities Commission of the Bahamas suspended FTX's registration and froze its assets on Thursday in order to "preserve assets and stabilizing the company."
The commission is aware of public statements suggesting that FTX clients' assets were mishandled, mismanaged and/or transferred to Bankman- Fried's Alameda Research.
The commission denied FTX's suggestion that it ordered the company to allow users to withdraw funds.
Forbes contacted FTX for comment.
The SEC and Justice Department are looking into whether FTX should have registered some of its securities with the SEC before selling them to investors, according to the Wall Street Journal.
Bankman-Fried resigned as CEO of FTX last week and the company, along with over 100 affiliated entities, filed for Chapter 11 reorganization. According to Bankman-Fried, the company saw $5 billion of withdrawals in one day after Changpeng Zhao, CEO of rival Binance, announced that his firm would sell all of its holdings in the FTXcryptocurrencies. After it was reported that Alameda held a large share of its assets in a token issued by FTX, Binance decided to stop issuing new coins. According to multiple news outlets, FTX gave billions of dollars to Alameda. The price of FTX's token fell in three days after the withdrawals and sent shares of exchanges tumbling. Due to news reports regarding mishandled customer funds and alleged US agency investigations, the company pulled out of the deal to acquire FTX, setting the stage for the company to declare Chapter 11.
$33 billion. At the end of last year, that was FTX's value. In the wake of the company's collapse, Bankman- Fried admitted he is no longer a billionaire.
Sam Bankman- Fried isn't a billionaire anymore.
Sam Bankman- Fried, a former billionaire, resigned as CEO of FTX.
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