An investigation of potential prison misconduct over the insolvency of cryptocurrency trade FTX is underway by monetary investigators and the Bahamas securities regulators, based on an announcement by the Royal Bahamas Police Power despatched to Reuters on Nov 13. The Royal Bahamas Police said: “In mild of the collapse of FTX globally and the provisional liquidation of FTX Digital Markets Ltd., a crew of economic investigators from the Monetary Crimes Investigation Department are working carefully with the Bahamas Securities Fee to research if any prison misconduct occurred.”The investigation comes after the regulator publicly denied FTX allegations over the weekend. On Nov. 11, FTX tweeted that it was instructed by “Bahamian HQ’s regulation and regulators” to facilitate the withdrawal of Bahamian funds. At some point later, the securities fee denied instructing or authorizing FTX to prioritize withdrawals for purchasers within the nation. The assertion shared on the SCB’s Twitter web page said:“The Fee needs to advise that it has not directed, licensed or steered to FTX Digital Markets, Ltd. the prioritization of withdrawals for Bahamian purchasers.” A report from The Wall Road Journal on Nov. 9 steered that the U.S. Division of Justice and the Securities and Alternate Fee are additionally investigating the collapse of the crypto trade. Additionally, the Division of Monetary Safety and Innovation (DFPI) within the state of California introduced on Nov. 10 opening an investigation concerning the “obvious failure” of the trade.As reported by Cointelegraph, FTX former CEO Sam Bankman-Fried, co-founder Gary Wang and director of engineering Nishad Singh are understood to be within the Bahamas and are “underneath supervision” by the native authorities. Roughly 130 corporations in FTX Group — together with FTX Buying and selling, FTX US, underneath West Realm Shires Providers, and Alameda Analysis — had began proceedings to file for chapter in the US on Nov. 11. Bankman-Fried has additionally resigned from his place as FTX’S CEO and will likely be succeeded by John Ray. Zane Tackett, the previous head of the institutional arm at FTX, confirmed on Twitter that the trade at the moment has liabilities value $8.8 billion. Cointelegraph has reached out to FTX and the Bahamas Police Power for feedback, however has not obtained a right away response.