The Bahamas struck very first and struck hard. The other day, there were reports walking around that their federal government was pressing Sam Bankman-Fried to provide control of FTX’s properties. What seemed like a strange story, today is more than verified. The Securities Commission of The Bahamas released an official document revealing the takeover. Obviously, they did it to secure the interests of FTX’s customers. It was immediate.
The file started:
” On 12 November 2022, the Securities Commission of The Bahamas (” the Commission”), in the workout of its powers as regulator acting under the authority of an Order made by the Supreme Court of The Bahamas, took the action of directing the transfer of all digital properties of FTX Digital Markets Ltd. (” FDM”) to a digital wallet managed by the Commission, for safekeeping. Immediate interim regulative action was needed to secure the interests of customers and lenders of FDM.”
To achieve that, The Bahamas entirely neglected the personal bankruptcy treatments opened in the United States. “It is not the understanding of the Commission that FDM is a celebration to the United States Chapter 11 Personal bankruptcy procedures,” the Securities Commission of The Bahamas stated candidly. And after that, they took control of the scenario. “Over the coming days and weeks, the Commission will engage with other regulators and authorities, in several jurisdictions, to attend to matters impacting the lenders, customers and stakeholders.”
In case anybody questions it, The Bahamas clarifies that “The Commission is accountable for the administration of the Digital Assets and Registered Exchanges Act.”
FTT rate chart for 11/18/2022 on FTX|Source: FTT/USD on TradingView.com
FTX’s New Management Alerted About The Bahamas Intentions
The Other Day, The Wall Street Journal reported on FTX’s brand-new management’s interest in The Bahamas federal government’s intents.
” Legal representatives for FTX’s brand-new management likewise stated in court documents that the federal government of the Bahamas is interrupting the exchange’s chapter 11 case, submitted recently in the U.S. Personal Bankruptcy Court in Delaware. The documents intensify a budding disagreement for control of FTX’s insolvency procedures in between its U.S. management and securities regulators in the Bahamas.”
At the time, who would’ve believed that The Bahamas was going to move that quick? Possibly we ought to have, since on that very same short article the WSJ notified us that “The Securities Commission tapped attorney Brian Simms KC to manage the liquidation of FTX”. Plus, “a Bahamian court authorized Mr. Simms’s consultation on Thursday”. And on Tuesday, Simms “submitted a chapter 15 petition in U.S.” What is a chapter 15, and what does it suggest? Back to the short article:
” The chapter 15 filing, if effective, might move a minimum of a part of FTX’s personal bankruptcy procedures to courts in the Bahamas. Mr. Simms stated Tuesday in a sworn statement the Supreme Court of the Commonwealth of the Bahamas has sole jurisdiction over FTX Digital and other entities run from the business’s “significant workplace complex” in Nassau, Bahamas.”
Now that the federal government of The Bahamas obviously acquired the properties, the U.S does not appear to have an option however to deal with them.
Conspiracy Theory Time
Is Sam Bankman-Fried dealing with the federal government of The Bahamas on this? Amongst the reports that flowed the other day, there was one that stated that he was being required to “hack” into FTX and give up custody of the properties. Plus, Bankman-Fried just recently stated that filling for Chapter 11 in the United States was his most significant error up until now. Could he be attempting to go back the operation with the assistance of the federal government of The Bahamas? Something to consider.
Included Image by Rinald Rolle on Unsplash|Charts by TradingView
Eduardo Próspero Read More.
