FTT recovers by 8% as FTX faces investigation for criminal misconduct by Bahamian police

The FTX saga continues, with the crypto exchange now standing in the crosshair of the Bahamian authorities. On the other hand, its native token, FTT, is painting its potential second green candle since the collapse, as reports of $380 million worth of FTT tokens flowing into the market appeared.

FTX makes a new enemy

The Bahamian police stated that they would begin investigating the possibilities of potential criminal misconduct during the FTX collapse. This investigation will be conducted along with the Securities Commission of Bahamas (SCB), which already had been dealing with FTX since Friday. 

The exchange tweeted that they would begin facilitating withdrawals of Bahamian funds at the behest of the SCB. However, the authorities soon refuted this, who noted that they made no such suggestions and that preferential treatment was not condoned by them.

On Sunday, they responded with a much more serious statement saying,

“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.”

Amid this news, reports of FTX printing more FTT tokens also came to light. About 196 million FTT tokens were noted to have been transferred from the FTX deployer wallet, despite the circulating supply standing at just 133 million FTT. 

While no new tokens were created on command, this supply has been suggested to be the locked tokens that weren’t supposed to be unlocked on November 14. This development led to the sudden surge of $380 million worth of tokens.

FTT surprises amid bearish news

Despite the altcoin being surrounded by negative developments, FTT managed to note a minuscule recovery on November 14. The cryptocurrency, trading at $1.614, continues to sink deeper with every passing day. 

Already down by 94.17% since the beginning of the collapse, FTT is now nearing the test of $1.00 (support level). The consistent decline is affecting not only the token but the crypto market as well, and if FTT falls through this support, its freefall will continue, leaving the crypto market in a bearish limbo as well.

FTTUSD 1-day chart

However, if it manages to bounce off and recover further, $3.69 would be its next critical target. Breaching this level and flipping it into support would set FTT on track to reclaim its investors’ losses, but the ongoing bearish fundamental developments might act as hindrances to a strong FTT recovery.