The Bahamas struck first and struck onerous. Yesterday, there have been rumors going round that their authorities was pressuring Sam Bankman-Fried to provide them management of FTX’s belongings. What appeared like a weird story was greater than confirmed in the present day. The Securities Fee of The Bahamas launched an official doc asserting the takeover. In fact, they did it to guard the pursuits of FTX’s purchasers. It was pressing.
The doc started:
“On 12 November 2022, the Securities Fee of The Bahamas (“the Fee”), within the train of its powers as regulator performing beneath the authority of an Order made by the Supreme Court docket of The Bahamas, took the motion of directing the switch of all digital belongings of FTX Digital Markets Ltd. (“FDM”) to a digital pockets managed by the Fee, for safekeeping. Pressing interim regulatory motion was vital to guard the pursuits of purchasers and collectors of FDM.”
To perform that, The Bahamas fully ignored the chapter procedures opened in the US. “It isn’t the understanding of the Fee that FDM is a celebration to the US Chapter 11 Chapter proceedings,” the Securities Fee of The Bahamas stated bluntly. After which, they took management of the scenario. “Over the approaching days and weeks, the Fee will interact with different regulators and authorities, in a number of jurisdictions, to handle issues affecting the collectors, purchasers and stakeholders.”
In case anybody doubts it, The Bahamas clarifies that “the Fee is chargeable for the administration of the Digital Property and Registered Exchanges Act.”
FTT value chart for 11/18/2022 on FTX | Supply: FTT/USD on TradingView.com
FTX’s New Administration Warned About The Bahamas Intentions
Yesterday, The Wall Road Journal reported on FTX’s new administration’s issues with The Bahamas authorities’s intentions.
“Attorneys for FTX’s new administration additionally stated in court docket papers that the federal government of the Bahamas is disrupting the trade’s chapter 11 case, filed final week within the U.S. Chapter Court docket in Delaware. The papers escalate a budding dispute for management of FTX’s insolvency proceedings between its U.S. administration and securities regulators within the Bahamas.”
On the time, who would’ve thought that The Bahamas was going to maneuver that quick? Perhaps we must always have as a result of in that very same article the WSJ knowledgeable us that “The Securities Fee tapped lawyer Brian Simms KC to supervise the liquidation of FTX”. Plus, “a Bahamian court docket authorized Mr. Simms’s appointment on Thursday”. A couple of days later, Simms “filed a chapter 15 petition in U.S.” What’s a chapter 15, and what does it indicate? Again to the article:
“The chapter 15 submitting, if profitable, may transfer at the very least a portion of FTX’s chapter proceedings to courts within the Bahamas. Mr. Simms stated Tuesday in a sworn declaration the Supreme Court docket of the Commonwealth of the Bahamas has sole jurisdiction over FTX Digital and different entities operated from the corporate’s “substantial workplace advanced” in Nassau, Bahamas.”
Now that the federal government of The Bahamas apparently took possession of the belongings, the usdoesn’t appear to have a selection however to work with them.
Conspiracy Principle Time
Is Sam Bankman-Fried working with the federal government of The Bahamas on this? Among the many rumors that circulated yesterday, there was one which stated that he was being compelled to “hack” into FTX and give up custody of the belongings. Plus, Bankman-Fried lately stated that filling for Chapter 11 within the US was his greatest mistake up to now. May he be attempting to revert the operation with the assistance of the federal government of The Bahamas? One thing to ponder.
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