FTX: Bankrupt crypto giant founder questioned by Bahamas authorities

FTX: Bankrupt crypto giant founder questioned by Bahamas authorities
Credit: Gregory Varnum / Wikimedia Commons

Sam Bankman-Fried, the resigned founder of the now-bankrupt cryptocurrency giant FTX, was being questioned by police and regulators in the Bahamas, where the company is headquartered, sources told the Bloomberg news agency.

His questioning does not mean that a criminal investigation is underway against the 30-year-old FTX founder, nor does it confirm one in the future. However, he is also facing prosecution in the US over his Alameda Research fund, which, according to press reports, was investing in crypto assets issued by FTX.com in a risky financial arrangement.

The cryptocurrency exchange, a highly unregulated industry, had filed for Chapter 11 bankruptcy protection on the same day Bankman-Fried resigned.

FTX officials did not give details of the number of transactions executed, but several hundred thousand dollars may have gone missing. US Treasury Secretary Janet Yellen said the platform’s dramatic collapse shows that the market for digital currencies requires “very careful regulation."

"It shows the weaknesses of this whole sector," Yellen said in an interview with Bloomberg News on Saturday.

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