What’s happening in the FTX case?

  • The bankrupt crypto exchange FTX is investigated by both the Bahamian and US authorities. 

  • The investigation revealed the involvement of several famous athletes and celebrities in the FTX debacle.

  • The FTX investigation will uncover many more chapters in the future.

28 Nov 2022 By: Rohit Tripathi
What’s happening in

FTX,  a cryptocurrency exchange that was formerly among 

The largest in the world, is headquartered in the Bahamas. 

The company, which declared bankruptcy on November 11 due to a lack of liquidity, is being investigated by both Bahamian and US authorities. 

In mid-November, the Royal Bahamas Police Department stated that government investigators in the Bahamas were looking into whether any criminal misconduct occurred.

Later, Bahamas securities authorities suspended FTX Digital's license and initiated involuntary liquidation proceedings the day before the US bankruptcy case kicked off.

On November 14, the US Attorney's Office in Manhattan, led by veteran securities fraud prosecutor Damian Williams, initiated an investigation into how FTX handled customer funds. The Securities and Exchange Commission and the Commodity Futures Trading Commission have also launched investigations.

During the investigations and lawsuits, the names of several notable stars and leaders came forward, which directly or indirectly be part of the FTX scandal. So, let's take a look at who's involved in the FTX investigation.

Prominent Names Came in the FTX investigation

As CoinGabbar previously reported, the lawsuit, which was filed in the US, names several well-known athletes and celebrities who charge with promoting the collapsed platform.

The lawsuit names NFL star, Tom Brady and his supermodel ex-wife Gisele Bundchen, NBA legends Steph Curry and Shaquille O'Neil, MLB players David Ortiz and Shohei Ohtani, and the Golden State Warriors as defendants.

This lawsuit has sparked a market debate over whether or not brand endorsement is legal in the United States. However, CoinGabbar also covered this topic in detail: “Why are Celebrities being Targeted in the FTX Case? Is Brand Endoresemnt Illegal Now?

Current Status of FTX Investigation

Every day, new developments in the FTX investigation emerge, which opens a new chapter for the crypto community. As per recent reports, the Singapore prime minister and the ruling government are under fire following the fall of the now-bankrupt cryptocurrency exchange FTX.

On November 27, the Bahamas Attorney General stated that the Bahamas Securities Commission, Financial Intelligence Unit, and the police's Financial Crimes Unit would continue to investigate the facts and circumstances behind FTX's bankruptcy crisis, as well as any potential violations of Bahamian law.

The investigation of FTX is quite intricate since every step reveals a new chapter. We must wait for the investigation's ultimate ruling, but in the meantime, stay tuned with CoinGabbar for further updates on the FTX investigation.

Read also: Bahamas Attorney General Rejects Remarks Made By New FTX CEO