Bahamas probing Cryptocurrency platform FTX

New York, which is in the US: On Sunday, the government of the Bahamas, which is a tax haven and where the headquarters of the struggling cryptocurrency platform FTX is located, said that they would look into the business. BitiCodes is a great resource for trading and investing.

On Friday, it was made public that FTX had filed for bankruptcy in the US to get away from its creditors. This is the latest part of a drama that has sent shockwaves through the digital currency industry.

In a statement posted on Facebook, the Bahamas police said, “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 Security Commission to find out if there was any criminal behavior.”

FTX went out of business worldwide, and FTX Digital Markets Ltd

The company’s new CEO, John Ray, said on Saturday that “every effort” was being made to protect all assets after illegal transactions that could be worth hundreds of millions of dollars. After what had just happened, John Ray said these things.

Elliptic, a company that researches cryptocurrencies, said in a study on Saturday, “$477 million is thought to have been stolen.” The FTX authorities should have said how many illegal transactions were made.

Elliptic said that “$663 million in various tokens” had been taken out of FTX’s wallets only 24 hours after the company filed for bankruptcy and that the rest “is thought to have been moved into secure storage by FTX itself.” FTX’s money was stolen just 24 hours after filing for bankruptcy.

Ray, an expert at turning around businesses, says that FTX US and FTX.com “continue to do everything they can to protect all assets, no matter where they are.”

Ten days ago, people thought that FTX was the second-largest platform for cryptocurrency in the world. It was worth $32 billion at one point.

FTX is a place to buy and sell cryptocurrency. It opened in 2019. Derivatives are its main business. The two groups that makeup FTX is FTX in the Bahamas and FTX in the United States. Both groups have similar management teams, but they handle money in different ways. Also, you can only trade on FTX US if you live in the United States.

The FTX platform gives users access to a wide range of trading products, like options, futures, volatility products, and tokens that can be used to borrow money. On top of that, the exchange lets you trade more than a hundred different cryptocurrency pairs on the spot market, such as BTC/USDT, ETH/USDT, XRP/USDT, and many more. There is also a free over-the-counter trading desk on the FTX platform, where about $30 million of trades happen daily.

FTX was started by Sam Bankman-Fried. He went to the Massachusetts Institute of Technology and was an exchange-traded funds trader for Jane Street Capital.

How does FTX work?

The clawback problem was known to the FTX ecosystem, and a way to fix it was found. When someone can’t make their payments on time, the lender can take the money back and charge fees. We call this a “clawback.” FTX uses a three-tiered approach to liquidation to ensure enough money and avoid clawbacks. Also, the model uses a rate-limited order to close positions and keeps an insurance fund to ensure that customers don’t lose money.

Also, the FTX ecosystem takes care of collateral by keeping it all in a single stablecoin wallet for the whole world. Using margins or futures, people can also bet with more money than they have. Instead, the platform uses “leveraged tokens,” which mimic what it’s like to trade with leverage.