The collapse of the FTX empire is having an impact on the entire cryptocurrency industry. The meltdown of the exchange had a significant impact on users, executives, investors, and employees. The market experienced extreme volatility during this time. The largest cryptocurrency in the world, Bitcoin [BTC], even fell to the $15,000 range.
The fall of the cryptocurrency giant was something that no one saw coming. FTX, which was facing liquidity crunches, has now filed for bankruptcy. SBF has also resigned as the CEO of the exchange.
As per recent reports, the downfall of the exchange is receiving global attention. The Royal Bahamas Police addressed on Sunday that they are launching an investigation into FTX’s fall.
Royal Bahamas Police looking into any criminal misconduct
As per the statement given by the Royal Bahamas Police, they are looking into the possibility of any criminal misconduct connected with the FTX exchange’s collapse. The Bahamas police highlighted that, “In light of the collapse of FTX globally and the provisional liquidation of FTX Digital Markets Ltd., a team of financial investigators from the Financial Crimes Investigation Branch are working closely with the Bahamas Securities Commission to investigate if any criminal misconduct occurred.”
The issues with FTX don’t end there. A recent exploit at FTX is said to have aggravated the ongoing problems. Telegram administrators alerted users that the FTX website “might download Trojans”, which could affect their portfolios. Furthermore, only hours after announcing Chapter 11 bankruptcy, the exchange saw strange outflows of nearly $600 million.
Nevertheless, the collapse of the cryptocurrency behemoth has definitely alerted global regulators. Many even suggest that this might bring in tighter regulations and speed up the process of inevitable regulation.