FTX, a cryptocurrency exchange, is under active civil and criminal investigation by the Bahamas Securities Commission (BSC).
According to BSC deputy director of enforcement Courtney Rolle, the company has been investigated for offering securities in the country without registering with BSC. The commission also said it has received complaints about the exchange operating outside of Bahama’s laws and regulations.
The Bahamas Securities Commission (BSC), the country’s regulatory body for capital markets, has confirmed that it is investigating a cryptocurrency exchange operating within its jurisdiction.
FTX In Serious Trouble
The BSC’s CEO Tenia N. L. Babers told CoinTelegraph over email: “The Securities Commission would like to advise the public that it is investigating crypto-asset service providers to determine whether they are operating within the jurisdiction of The Bahamas and if so whether their activities are compliant with all applicable Bahamas laws under its regulatory oversight. As such we cannot provide any further comments at this time as the matter is under active investigation”
According to an email shared on Twitter by the company CEO Sam Bankman-Fried, investigations into the exchange are taking place over its offering of securities in the country.
A statement from a spokesperson for FTX reads: “FTX does not currently have any operations or employees in The Bahamas and therefore does not hold Financial Service Provider (FSP) status with local regulators; however, it does have FSP status with FINRA,” referring to America’s self-regulatory organization for broker dealers.
The American cryptocurrency exchange Fortunex (FTX) is currently under investigation by the Bahamas Securities Commission (BSC). The company has been ordered to stop selling security tokens within the country, but can continue to offer other services.
The legal filings state that a temporary injunction has been issued that prevents FTX from offering security tokens within the country until further notice, but does not affect other services offered by the exchange.
According to CoinMarketCap data, the company’s 24-hour volume on Friday was $15 million at press time – down from $25 million earlier this month.
