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Bahamas government requires FTX bankruptcy case to be heard under its jurisdiction

The Bahamas Securities Commission (SCB) transferred all the assets of the bankrupt FTX to a government-controlled wallet, completely ignoring the bankruptcy of the FTX cryptocurrency exchange launched in the United States.

The Government of The Bahamas has released a white paper announcing a government takeover of FTX’s parent company Digital Markets and a request to bring FTX’s bankruptcy case to a court in the Bahamas.

“SCB does not acknowledge that FTX Digital Markets is in bankruptcy proceedings under US law and is taking control of the situation. In the coming weeks, the Commission will engage with other regulators and authorities in multiple jurisdictions to address issues affecting creditors, customers and other stakeholders,” the Securities Commission announced.

Earlier it was reported that the SCB secured in the decision of the Supreme Court of the Commonwealth of the Bahamas the appointment of lawyer Brian Simms to oversee the liquidation of FTX. In accordance with his authority, Simms filed a petition with the American authorities.

The procedure launched in the Bahamas protects FTX from forfeiture of assets in the United States and provides for the transfer of control of the bankruptcy process to local courts in the islands. During the hearing, Simms stated under oath that the Supreme Court of the Commonwealth of the Bahamas had exclusive jurisdiction over both FTX Digital and its subsidiaries.

Last week, SCB denied reports from the FTX crypto exchange that it was interfering in any way with the new administration of the company or demanding that the assets of clients registered in the Bahamas be withdrawn as a priority. Therefore, the demarche of the government of the islands came as a complete surprise and exacerbated the dispute over control of the FTX insolvency proceedings. Lawyers for FTX have filed for legal relief claiming that the Bahamas government is disrupting the stock exchange’s bankruptcy case, filed last week in a court in the US Delaware.


Source: Bits

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