The government of the Bahamas has seized FTX’s assets.
Key Details
- The Securities Commission of the Bahamas and the country’s Supreme Court announced in a Thursday night press release that it has taken control of all of FTX’s digital assets “for safekeeping.”
- The order was filed on November 12 and it is unclear when it was enacted and why the announcement was delayed, CoinDesk reports.
- FTX’s Bahamas division filed for Chapter 15 bankruptcy on Tuesday. Former FTX CEO Sam Bankman-Fried (SBF) may still be extradited from the Bahamas
- The Royal Bahamas Police Force has been investigating FTX headquarters in the Bahamas for the past week.
Why it’s news
As we previously reported, resigned FTX founder SBF is reportedly attempting to tie up his assets in the Bahamas to interfere with the company’s bankruptcy proceedings.
“The move comes hours after the former Enron lawyer overseeing FTX’s bankruptcy made a series of alarming revelations in a court filing about the chaos at the crypto exchange. The filing painted the picture of a crypto empire that was massively mismanaged and potentially fraudulent, including unreliable financial statements, the mishandling of confidential data, and the use of corporate funds to buy homes for employees in the Bahamas,” says CNN Business.
The Commission announced on November 14 that it would be sending liquidators to assess the company. It stated in its press release that it will be working with global jurisdictions to address other affected parties, although it may still affect bankruptcy proceedings in the U.S.
“It is not the understanding of the Commission that FDM is a party to the US Chapter 11 Bankruptcy proceedings. Over the coming days and weeks, the Commission will engage with other regulators and authorities, in multiple jurisdictions, to address matters affecting the creditors, clients, and stakeholders of FDM globally to obtain the best possible outcome,” says the press release.
