--- title: "The FTX Collapse Is So Egregious That Even the Bahamas Are Investigating" description: "There are few things that wealthy people can do to get in trouble in the crypto-friendly tax haven of the Bahamas. But alas, Sam Bankman-Fried has done it." date: "2022-11-14" modified: "2022-11-14" authors: - name: "Maggie Harrison Dupré" job_title: "Senior Staff Writer" link: "https://futurism.com/authors/mharrison" url: "https://futurism.com/the-byte/ftx-collapse-cops-bahamas-investigating" categories: - "Blockchain" - "Future Society" tags: - "crypto" - "ftx" - "sam bankman-fried" - "the digest" --- # The FTX Collapse Is So Egregious That Even the Bahamas Are Investigating ![There are few things that wealthy people can do to get in trouble in the crypto-friendly tax haven of the Bahamas. But alas, Sam Bankman-Fried has done it.]() *\Image: Getty Images/Futurism\* ## Gotta Be Bad There are few things that very wealthy people can do to get in trouble in the crypto-friendly tax haven that is the Bahamas — but disgraced FTX figurehead Sam Bankman-Fried has pulled it off. Multiple reports claim that in addition to an [SEC probe]() stateside, the FTX founder — and [now-former]() CEO — has been questioned by Bahamian police and regulators regarding his crypto exchange's spectacular crash. A source familiar with the matter reportedly [told *Bloomberg*]() that Bankman-Fried was detained and interrogated on Saturday, shortly after it was revealed that on Friday night over [$650 million worth]() of "unauthorized" token withdrawals were drained from FTX's global exchanges. "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 Royal Bahamas Police Force (RBPF) [confirmed to *Decrypt*](), though declined to confirm if the questioning was related to the missing funds. ## Swirling Rumors Of course, SBF's detainment doesn't necessarily mean that he'll actually be charged with anything. But still, the fact that Bahamian forces have taken any mitigating steps is a pretty impressive marker of just how badly FTX blew it. Along with its global reputation as a tax haven, the island nation has a long history as a top money laundering locale, and has more recently moved to [embrace cryptocurrencies]() in a major way. If you're going to get into any web3 sketchiness, the Bahamas are the place to be. This development also comes amid a flurry of rumors regarding the fallen figure's alleged plans to flee. Though the widely-circulated theory that SBF had hopped a plane to Argentina was debunked (when [*Reuters* asked]() the founder over text message if he'd skipped town, SBF responded with a succinct "nope") [*CoinTelegraph* reports]() that, according to a source, SBF and two other top FTX dogs are allegedly "under supervision" by Bahamian forces as the result of their looking to run to Dubai. While nothing other than the fact that SBF was in fact questioned by Bahamian forces has been confirmed, he wouldn't exactly be the first crypto kingpin to skip town. The [3AC founders]() are [still missing](), as is TerraLuna creator Do Kwon (although [by his word](), he's definitely *not* on the lam, thanks!). Unfortunately for SBF, however, he may have missed the bus. **READ MORE:** *[Bahamas Police Are Investigating Potential 'Criminal Misconduct' by FTX]()* \[*Decrypt*\] **More on the FTX crash:** *[Disgraced Sam Bankman-Fried Steps Down as CEO of FTX]()* ## Author At Futurism, I've reported extensively on the rise of AI as a cultural and business force shaping the media industry, and more broadly how those dynamics are changing how we all consume and share information and relate to one another. I'm also fascinated by public health policy and ethics, the role of emerging tech in politics and governance — and the powerful people and forces at those intersections — climate change, and the environment. My investigation on Sports Illustrated's use of AI-generated authors with fictional biographies won a 2024 Mirror Award for "Best Story on Media Coverage of Artificial Intelligence in Journalism and the Media" from Syracuse University's SI Newhouse School, I contributed to Niemen Lab's 2025 Predictions for Journalism series, and I've discussed my work for Futurism during appearances on NPR, CNN, the BBC, the CBC, and more. I grew up in rural Pennsylvania and attended the University of Massachusetts Amherst, where I played Division I field hockey for the Minutewomen as a midfielder. Since then, I've lived in New Orleans, Louisiana and Manhattan, New York. I spend my free time running, reading, perusing archival fashion, and searching for the world’s best negroni. I also have a debonair tuxedo cat, Westley, who's named after "The Princess Bride." ### Author social links [Bluesky]()