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Bahamas reportedly asked SBF to mint new coin after FTX collapse

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The Bahamas authorities reportedly labored with former FTX CEO Sam Bankman-Fried to problem 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 price “lots of of tens of millions 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 laptop programs of the now-defunct FTX buying and selling platform. In keeping with American attorneys, Bahamas officers had been “answerable for directing unauthorized entry” to FTX programs with a view 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 professional, reportedly watched as somebody minted new cash whereas he and his crew tried to get management of FTX’s laptop programs, the report notes.

The attorneys’ claims additional escalate the battle between FTX restructuring executives in america and officers within the Bahamas. In keeping with 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 data and different info.

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

In an effort to assist 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 tens of millions of {dollars} price of cryptocurrency leaving the trade.

Associated: Hours earlier than his arrest, SBF denied being a 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 nicely. In keeping with some experiences, SBF spent about $40 million on supporting Democrats through the 2021–2022 political cycle. Tesla CEO Elon Musk speculated that the quantity that SBF really donated to Democratic candidates was over $1 billion.

The information comes shortly after SBF expressed curiosity in forming a brand new undertaking with a view to repay as much as $50 billion to FTX’s collectors. The FTX founder was subsequently arrested within the Bahamas on Dec. 12.