It Turns Out That FTX Users Are Reporting Complications In Accessing Their Bank Accounts

After the FTX collapse saga, regulators and other institutions are franticly working to put more and more charges against the exchange’s CEO Sam Bankman-Fried, or SBF. The race seems to have spread across the banking sector, as numerous FTX users have reported facing complications in accessing their bank accounts linked with the collapsed exchange.

Are FTX-related bank accounts in US banks’ crosshairs?

Interestingly, Elixir Protocol’s head of operations Cole Petersen rang the alarm with a major issue related to accessing his bank account. It turns out that the bank he operates with decided to close his accounts and empty the assets in them due to previous FTX wire deposits.

The bank replied that it will issue Petersen a check for the amount, but the closure of the accounts happened without a warning. Furthermore, all of his accounts showed a $0.00 balance at the time Petersen first checked, leading him to consider that users’ bank accounts can be affected if they got linked with FTX earlier.

Petersen’s claims were echoed by Twitter users, describing a similar scenario after accessing crypto and Forex platforms. However, FTX was not the core reason for the account closure. Petersen noted that FTX-related problems may occur on accounts linked with FTX US.

SBF is in jail, what’s next?

The saga with the FTX crypto exchange is still developing, as SBF has reportedly filed a new application for bail in the Bahamas Supreme Court. The Chief Magistrate JoyAnn Ferguson-Pratt rejected the initial $250,000 bail petition, made by the exec.

It turns out that The United States Department of Justice (DOJ), Securities and Exchange Commission (SEC), and Commodity Futures Trading Commission (CFTC) raised civil and criminal charges against the former FTX chief executive about a month after his exchange slid into bankruptcy.

Now, the FTX CEO is filing a new bail application, after surrendering to the Bahamian police on December 13. Bankman-Fried is now at the Fox Hill Prison, which happens to be the Bahamas’ sole penitentiary, with a 2021 US State Department reporting that the conditions at the 1,000-person correctional facility were “harsh,” with extreme overcrowding, poor nutrition, and inadequate sanitation.

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