The Royal Bahamas Police Force is investigating alleged criminal misconduct at Sam Bankman Fried's now-bankrupt cryptocurrency exchange FTX, the department said in a statement Sunday.

According to an official notice, a team from the jurisdiction's Financial Crimes Investigation Branch is "working closely" with the Bahamas Securities Commission to determine whether any criminal activity occurred.

While it's unclear what specific possible crimes the commission is looking into, the commission previously stated that it "is aware of public statements suggesting that (FTX) clients' assets were mishandled, mismanaged, and/or transferred to (Bankman-Fried's crypto trading firm) Alameda Research," which would be "potentially unlawful."

On Thursday, the Bahamas Securities Commission terminated FTX's registration and ordered the freezing of assets linked to the exchange.

After the finances of FTX's sister company Alameda Research caused a liquidity crunch in early November, the once multi-billion dollar cryptocurrency business began to fall apart. Before the deal was abandoned on Tuesday, competing exchange Binance was attempting to acquire the troubled FTX.

Binance made its decision a few days after Coindesk revealed that a significant portion of Alameda's assets were held in a coin produced by FTX (Bankman-Fried initially referred to the worries regarding FTX's financial stability as "unfounded rumors"). Later, it was revealed by numerous media sites that FTX had lent billions of dollars to Alameda, including some customer monies. In the three days that followed the withdrawals, the price of the FTX token dropped 86%, sending the value of Bitcoin, Ethereum, and the shares of the exchange Coinbase down by 20% or more.

Binance briefly attempted to acquire FTX last week in order to "help cover the liquidity crunch," but the company later backed out of the deal, citing due diligence and "news reports regarding mishandled customer funds and alleged US agency investigations," paving the way for FTX to declare bankruptcy.

The Bahamas' financial regulators have been keeping a close eye on the proceedings. When FTX confirmed that it had permitted some Bahamian customers to withdraw monies from the exchange in accordance with local regulatory standards, the Securities Commission released a statement saying that it had not authorized the exchange to reinstate withdrawals.

According to the Wall Street Journal, the U.S. Justice Department is also investigating FTX, including whether the company should have registered some of its securities with the SEC before offering them to investors.

Last week, Bankman-Fried resigned as CEO of FTX, and the firm, along with over 100 associated organizations, filed for Chapter 11 bankruptcy in the aftermath of a liquidity crisis that led to the collapse of one of the world's major crypto exchanges.