- Bahamian officials requested Sam Bankman-Fried to mint new crypto cash as FTX collapsed, US lawyers say.
- In accordance to court docket documents, the officials informed SBF to transfer the digital belongings to their command.
- Bankman-Fried was arrested in the Bahamas on Monday just after the US submitted prison prices.
Bahamian authorities officers requested Sam Bankman-Fried to mint new crypto coins as FTX collapsed, lawyers for FTX explained in a court docket filing on Monday.
Bloomberg very first reported the news.
Bankman-Fried was arrested in the Bahamas on Monday immediately after the US submitted felony fees. US authorities verified the arrest on social media, and the SEC launched rates on Tuesday early morning, accusing Bankman-Fried of a “many years-long” fraud.
In accordance to the Monday court docket filing, FTX’s CEO John Ray III and his workforce experimented with to block unauthorized customers from FTX techniques and viewed as they minted new FTT tokens in the early several hours of November 12.
The court docket submitting accused Bahamas officers of instructing Bankman-Fried and FTX cofounder Gary Wang to “mint a sizeable amount of new tokens.”
The court docket files also alleged the officers experienced instructed the pair to “transfer hundreds of hundreds of thousands of dollars’ really worth of those people new tokens and other electronic property” to the management of the Bahamian officials.
FTX submitted for Chapter 11 bankruptcy on November 11 and Bankman-Fried stepped down as CEO with speedy influence.
The court papers also pointed to a November 9 email to the Bahamas lawyer standard where by Bankman-Fried offered to open up up withdrawals for all Bahamian buyers.
Tensions between the US group and the Bahamian officers have been escalating in the court docket filings. A January federal court docket day is established to make a decision how substantially deference the US group will have to give the Bahamas in the investigation, for every Bloomberg.
Associates for the Bahamian governing administration did not instantly react to Insider’s request for remark.
