Desperate FTX users employ shady tactics to bypass bankruptcy process


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Social media is inundated with posts from desperate FTX users asking for help in withdrawing their locked funds.

according to Zane Tucketthe Bahamian, former head of FTX’s institutional sales, has been allowed to withdraw funds from the platform despite withdrawal freezes on problematic exchanges.

As a result, Bahamian citizens began offering services to drain locked funds from exchanges. Additionally, some of his FTX users have bribed FTX employees hefty sums of money to change their country of residence account settings to The Bahamas.

On-chain data shows that withdrawals are occurring

Despite legality, morality, and the potential for fraud this way, @statelayer I posted a screenshot of the transaction showing the withdrawal from FTX. As a result, FTX’s Tether balance has halved, he added.

@statelayer says that the transaction is “People are clearly exploiting this Bahamian loopholeIt is unclear if these withdrawals concern FTX employees or desperate users who have found a reliable way out of the exchange.

Bitcoin Magazine Analyst Dylan LeClair posted a screenshot of a successful KYC user and then withdrew large sums of money from the platform.

Bahamian Loophole Divides Communities

I comment about the above user successfully withdrawing money. @Depression 2019 He endorsed the move by saying that if he had a lot of money in FTX, he would probably do the same thing.

@depression2019, on the other hand, brushed off any possible legal ramifications and justified the actions necessary to avoid the lengthy bankruptcy process only to regain a small percentage, if any.

Similarly, “Daily Lawyers” @wassielawyer Given the complex turmoil of FTX’s bankruptcy, he said, “it will take years” for legal implications to catch up. He added that this is not legal or financial advice.

Given what a dump fire is, it would take years for people to consider tracking you down.

Others, however, took a different view. @Thinking USD sees this as a black-and-white problem, calling such behavior outright financial crime.


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Conor the Tech Veteran
He previously spent 6 years publishing research on tech stocks, and believes in using a combination of fundamental, technical, and quantitative analysis. Prior to a career in tech stocks journalism he was a technology and semiconductor analyst with a research team.

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