Bahamas reportedly asked SBF to mint new coin after FTX collapse


The Bahamas authorities reportedly labored with former FTX CEO Sam Bankman-Fried to challenge 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 value “a whole lot of thousands and thousands of {dollars},” attorneys 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 methods of the now-defunct FTX buying and selling platform. Based on American attorneys, Bahamas officers have been “answerable for directing unauthorized entry” to FTX methods as a way to take over management of digital property underneath the supervision of a U.S. court docket.

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

The attorneys’ claims additional escalate the battle between FTX restructuring executives in america and officers within the Bahamas. Based on U.S. attorneys, liquidators within the Bahamas requested a U.S. choose for entry to FTX knowledge managed by their American counterparts, together with buying and selling knowledge, electronic mail information and different info.

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

With a view to help their accusations of alleged cooperation between Bahamas authorities and SBF, the American attorneys 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} value of cryptocurrency leaving the trade.

Associated: Hours before his arrest, SBF denied being 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 experiences additionally counsel that SBF had connections with the U.S. authorities as effectively. Based on some experiences, SBF spent about $40 million on supporting Democrats in the course of 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 interest in forming a new project as a way to repay as much as $50 billion to FTX’s collectors. The FTX founder was subsequently arrested in the Bahamas on Dec. 12.