New Cryptocurrency By FTX:
According to reports, a significant international legal issue between the United States and the Commonwealth of the Bahamas has been exacerbated by the FTX failure.
According to reports, the Bahamas government collaborated with Sam Bankman-Fried, the former CEO of FTX, to launch a new cryptocurrency managed locally.
Lawyers for FTX claimed in a court document that after FTX collapsed in November, Bahamas government officials requested Bankman-Fried to create new digital assets worth “hundreds of millions of dollars,” according to Bloomberg on December 12. The government reportedly asked the previous CEO of FTX to give island officials power over the new tokens.
Bahamas Look Out:
According to the investigation, Bahamas officials allegedly tried to assist Bankman-Fried in regaining access to crucial computer networks of the long-gone FTX trading platform. Bahamas officials were “responsible for directing unauthorized access” to FTX systems, claim American attorneys, to seize possession of digital assets under the supervision of a U.S. court.
As he and his team attempted to gain access to FTX’s computer systems, John J. Ray III, FTX’s new CEO and restructuring expert, reportedly saw it as someone who created new coins.
Claims made by the attorneys intensify the tension between American executives of FTX Restructuring and Bahamas government representatives. According to U.S. lawyers, liquidators in the Bahamas requested access to FTX data managed by their American counterparts, including trading data, email records, and other material.
In a Tuesday court filing, the attorneys allegedly stated that the Bahamas and Messrs governments would be given quick access to the requested live, dynamic data.
The American attorneys claimed that SBF opened withdrawals for all Bahamian clients as evidence of alleged coordination between Bahamas authorities and SBF. On November 10, the company said it had begun to allow withdrawals of Bahamian cash, citing conformity with local legislation, just one day before FTX declared bankruptcy. As a result of the incident, the exchange lost cryptocurrency valued at millions of dollars.
Other reports also imply that SBF had connections with the U.S. government, notwithstanding the current report’s further assertions of strong relationships between FTX and Bahamas government officials. In the 2021–2022 election campaign, SBF reportedly spent roughly $40 million supporting Democrats. Elon Musk, the CEO of Tesla, hypothesized that SBF gave more than $1 billion to Democratic politicians.
The information was released soon after SBF expressed interest in launching a new venture to pay up to $50 billion in debt to FTX’s creditors. The FTX founder was subsequently detained on December 12 in the Bahamas.