Bahamas reportedly asked SBF to mint new coin after FTX collapse

The Bahamas authorities reportedly worked with erstwhile FTX CEO Sam Bankman-Fried to contented a caller cryptocurrency controlled by section officials.

Following the FTX illness successful November, Bahamas authorities officials reportedly asked Bankman-Fried to mint caller integer assets worthy “hundreds of millions of dollars,” lawyers for FTX said successful a tribunal filing, Bloomberg reported connected Dec. 12. The authorities besides reportedly asked the erstwhile FTX CEO to transportation the caller tokens to the power of land officials.

The study besides suggests that Bahamas officials tried to assistance Bankman-Fried regain entree to cardinal machine systems of the now-defunct FTX trading platform. According to American lawyers, Bahamas officials were “responsible for directing unauthorized access” to FTX systems successful bid to instrumentality implicit power of integer assets nether the supervision of a U.S. court.

John J. Ray III, FTX’s caller CEO and restructuring expert, reportedly watched arsenic idiosyncratic minted caller coins portion helium and his squad attempted to get power of FTX’s machine systems, the study notes.

The lawyers’ claims further escalate the struggle betwixt FTX restructuring executives successful the United States and officials successful the Bahamas. According to U.S. lawyers, liquidators successful the Bahamas asked a U.S. justice for entree to FTX information controlled by their American counterparts, including trading data, email records and different information.

“It is simply a petition for live, dynamic entree that would beryllium provided instantly to the authorities of the Bahamas and to Messrs,” the lawyers reportedly wrote successful a tribunal filing connected Tuesday.

In bid to enactment their accusations of alleged practice betwixt Bahamas authorities and SBF, the American lawyers mentioned that SBF opened withdrawals for each Bahamian clients. On Nov. 10, conscionable a time earlier FTX filed for bankruptcy, the steadfast said that it started to facilitate withdrawals of Bahamian funds, citing compliance with section regulations. The lawsuit resulted successful millions of dollars worthy of cryptocurrency leaving the exchange.

Related: Hours earlier his arrest, SBF denied being portion of ‘Wirefraud’ chat group

While the caller study brings much allegations of adjacent ties betwixt FTX and authorities officials successful the Bahamas, different reports besides suggest that SBF had connections with the U.S. authorities arsenic well. According to immoderate reports, SBF spent astir $40 million connected supporting Democrats during the 2021–2022 governmental cycle. Tesla CEO Elon Musk speculated that the magnitude that SBF really donated to Democratic candidates was implicit $1 billion.

The quality comes soon aft SBF expressed involvement successful forming a caller project successful bid to repay up to $50 cardinal to FTX’s creditors. The FTX laminitis was subsequently arrested successful the Bahamas connected Dec. 12.