FTX Scandal: Bahamas Accused of Working with Bankman-Fried to Create New Tokens

• Bahamas officials were accused of attempting to mint new digital assets with Bankman-Fried.
• The Securities Commission of the Bahamas (SCB) denied these claims and accused FTX of stealing tokens under their control.
• It is unclear what really happened, but everybody remotely connected to FTX is being affected by the scandal.

The recent collapse of FTX has brought to light some startling revelations, particularly concerning the Bahamas government and Bankman-Fried. According to court filings in December, lawyers for FTX accused Bahamas officials of working with Bankman-Fried to create new tokens worth hundreds of millions of dollars, and requested that the new tokens be transferred over to government officials. Furthermore, the lawyers alleged that Bahamas officials had attempted to help Bankman-Fried regain access to FTX’s computer systems in order to take control of some of the digital assets that were on the platform.

In response to the allegations, the Securities Commission of the Bahamas (SCB) denied the claims and accused FTX of stealing tokens that were under their control. The SCB went on to say that it had taken “all necessary steps” to ensure that the tokens in question did not end up in the wrong hands. It is unclear what really happened in this case, but it is clear that everybody remotely connected to FTX is coming out badly amid the whole debacle.

The Bahamian government has been left red-faced by the whole affair and is no doubt hoping that the whole thing blows over soon. However, the allegations against Bankman-Fried and FTX suggest that the scandal could be far from over. The fact that the Bahamas regulator is so closely connected to the scandal makes it all the more serious. For now, it remains to be seen what the outcome of the case will be and how it will affect FTX and the Bahamas government.