November 9, 2022
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An FTX executive breached Bahamian Immigration regulations by working outside the scope of his work permit, court documents have revealed.
The Supreme Court will now hear the petition to put FTX’s Bahamian subsidiary into full liquidation on November 6, it has been disclosed, amid “substantial progress” in resolving the dispute with its US arm.
An auto dealer yesterday disclosed he expects to sell 60 percent of the former FTX vehicle fleet assigned to him within 30 days, but warned: “This is not a fire sale.”
FTX MEETING CLAIM DENIED BY PM OFFICE: US chief says founder’s father was to meet Davis - but PM was in Egypt
The Prime Minister’s Office last night refuted claims that he was due to meet Sam Bankman-Fried’s father on the day FTX imploded because he was away battling on The Bahamas’ behalf against climate change.
A Delaware judge has warned FTX’s Bahamian liquidators that he is unlikely to sanction their US adversary, or dismiss the legal action he has brought against them, on the basis that the two sides’ co-operation deal was violated.
FTX’s US chief has revealed that the collapsed crypto exchange’s Bahamian property empire has amassed $450,000 in unpaid fees to local services providers over the ongoing impasse over how to sell the portfolio.
FTX’s Bahamian liquidators are seeking to recover a total $9.15bn from the crypto exchange’s US entities with some 84 percent of this sum involving assets that were “misappropriated” prior to its late 2022 collapse.
FTX’s Bahamian liquidators will aim to resolve multiple disputes with their US counterparts when mediation begins next month following the appointment of a retired US judge to act as referee.
FTX’s implosion consumed 21 percent of the Securities Commission’s near-$15m operating expenses last year as it raced to preserve client assets and tackle the legal and regulatory fall-out.
FTX’s founder and two of his closest associates were last night accused of “misappropriating” some $4.86m of client monies to acquire high-end Bahamian real estate that they subsequently put in their personal names.
FTX’s Bahamian liquidators have accused their US adversary, aided by its local law firm, of going behind their backs in attempting to sell $256m worth of real estate domiciled in this jurisdiction.
An attorney and “former Bahamian government official” was allegedly offered a $1m “bonus” to swiftly obtain the necessary licences so that FTX could move to this nation, it was asserted yesterday.
FTX's Bahamian liquidators are asserting they may be the only ones "lawfully" able to pursue "material volumes" of client withdrawals that occurred around the time of the exchange's collapse and may thus be deemed void.
FTX’s Bahamian liquidators are “liaising” with local charities and non-profits over the collective $5.4m in donations they received from the collapsed crypto exchange to determine if they still hold any of these funds.
FTX’s Bahamian liquidators say it is increasingly likely they will have to battle the US Justice Department in the courts to recover $143m given that prospects of an amicable resolution have become “more remote”.
The Bahamas' status as a non-nuclear power did not influence the decision to refuse FTX's local liquidators relief from the worldwide asset freeze imposed by Chapter 11 bankruptcy proceedings, a Delaware judge has asserted.
A key financial adviser to FTX's US chief yesterday disputed as "misleading" assertions that some $7.7bn is currently owed to the failed crypto exchange's Bahamian subsidiary.
FTX Bahamas' liquidators yesterday warned they will be placed in "an impossible situation" if they are forced into a "never-ending" legal battle with their US counterparts as operating cash has dwindled to less than $1m.
Some $13.4bn flowed through FTX's Bahamas accounts in the ten months immediately prior to the crypto exchange's collapse, its liquidators revealed yesterday, as they sought to dispel allegations it was "a nullity".
FTX's Bahamian liquidators have accused their US adversaries of "breaching every single" co-operation pledge in just four short months as they urged the Supreme Court to "sort it out" with Delaware.
An FTX creditor/investor group yesterday leapt to The Bahamas defence by branding claims that the Government was "in cahoots" with Sam Bankman-Fried as "shockingly inappropriate".
FTX's Bahamian liquidators yesterday accused their US adversaries of employing "underhanded" tactics to seize control of all the crypto exchange's clients and assets - including those that fall under their winding-up process.
FTX's Bahamian provisional liquidators have their own data bargaining chips, it has emerged, as they control "electronic devices" used by Sam Bankman-Fried and his inner circle that their US counterparts are eager to access.
The role played by FTX’s former Bahamian chief in arranging a $50m loan to Deltec Bank & Trust’s parent company yesterday came under scrutiny through fresh legal filings.
FTX’s Bahamian liquidators are accusing their US counterparts of interfering with a $45m stablecoin recovery and failing to preserve the value of the collapsed crypto exchange’s $241m local real estate empire.
FTX’s Bahamian liquidators yesterday warned their US counterparts that the failed crypto exchange’s $446m claim against another digital assets firm will not be resolved unless their interests are satisfied too.
A Bahamian bank and its chairman yesterday pledged to “vigorously defend” themselves against a class action lawsuit’s accusations that they helped “perpetuate” an $8bn fraud by FTX’s founder.
FTX’s Bahamian liquidators believe they will soon gain access to critical records that have “so far eluded them” while avoiding the risk of costly and time-consuming legal battles in Delaware.
FTX’s Bahamian operation was yesterday branded “a big piece of the puzzle that needs to get resolved” as its provisional liquidators successfully obtained US legal recognition for their ongoing investigations.
Cash assets held by FTX’s Bahamian subsidiary were “materially depleted” to the extent they shrank by 76 percent - or more than three-quarters - in the five weeks immediately prior to the crypto exchange’s implosion.
FTX’s Bahamian liquidators are probing whether $7.7bn was withdrawn from its local subsidiary via “legitimate” transactions as they yesterday revealed virtually all countries are represented in its 2.4m-strong client base.
FTX’s Bahamian liquidators will next Wednesday seek US legal recognition that will enable them to conduct investigations and pursue the local subsidiary’s assets held in the United States.
FTX’s Bahamian liquidators are opposing the US Justice Department’s bid for an investigator to probe the crypto exchange’s collapse on the grounds it is overkill and will cost creditors “tens of millions of dollars”.
Multiple Bahamian companies identified as FTX creditors yesterday asserted that the purported sums owed to them were minimal to non-existent.
FTX’s US chief last night moved to ratify the co-operation agreement thrashed out with the crypto exchange’s Bahamian joint provisional liquidators to end two months of bitter public clashes.
A former FTX senior attorney yesterday alleged that “false statements” were made in legal filings to “diminish” The Bahamas after the crypto exchange was advised this nation should be the main venue for its liquidation.
FTX’s implosion was yesterday branded a “dumpster fire” as it was revealed that 25 percent of recovered international digital assets are in the Bahamian Securities Commission’s safekeeping.
FTX’s Bahamian provisional liquidators have gained control of $46m in Tether stablecoins as part of their “co-operation” deal with the crypto exchange’s US chief that creates a “path forward” to resolve all remaining disputes.
FTX Trading Limited has agreed on terms for “mutual cooperation” on the chapter 11 in the US and the provisional liquidation in The Bahamas.
THE new ownership of FTX has accused the joint provisional liquidators (JPL) in The Bahamas of conspiring with the Securities Commission of The Bahamas (SCB) in hiding $300m in assets during the liquidation process.
The Securities Commission of The Bahamas has denied allegations of directing the failed crypto-exchange FTX to mint $300m tokens prior to its collapse.
FTX’S $3.5BN HELD ‘FOR SAFEKEEPING’: Value of assets controlled by Securities Commission is confirmed in statement
MORE than $3.5bn worth of digital assets from FTX Digital Markets have been transferred to digital wallets that are now under the control of the Securities Commission of The Bahamas “for safekeeping”, it was revealed last night.
FTX’s Chapter 11 lawyers applied for a motion for the enforcement of an automatic stay from creditors in FTX proceedings due to shuffling of funds days prior to the chapter 11 filing, new court filings state.
THE collapse of FTX serves as a crucial learning lesson and an opportunity to fight for the reputation of the country, according to representatives of the Organization for Responsible Governance.
‘FTX BAHAMAS CHIEF CONFESSED TO FRAUD’: Securities Commission director says admission led to liquidation move
The head of FTX’s Bahamian subsidiary sparked an “urgent” police probe into possible criminal misconduct when he confessed to local regulators about the misuse of multi-billion dollar client funds.
FTX’s new US chief yesterday confirmed he is probing a “highly irregular” transaction with Bahamas links where Sam Bankman-Fried’s hedge fund paid an “off the charts” sum to buy into a small American bank.
A major legal battle was brewing last night for control of $256.3m worth of Bahamian real estate assets as FTX’s local liquidators sought to extract them from Chapter 11 bankruptcy proceedings in the US.
FTX LIQUIDATOR IS FROZEN OUT: Access to company records blocked – and documents could be lost forever
The joint provisional liquidators for FTX’s Bahamian subsidiary have revealed a month-long block on access to the company’s records is “frustrating” their efforts to secure and protect assets.
A Bahamian bank and trust company, and its chairman, are coming under increasing scrutiny by US senators over their links to FTX and other entities owned by the collapsed crypto currency exchange’s founder, Sam Bankman-Fried.
FTX’s Bahamian provisional liquidators were yesterday urged to “thoroughly investigate” any payouts to local investors that violated the Supreme Court asset freeze as the US Justice Department moved to intervene in Delaware.
PRIME Minister Phillip “Brave” Davis said yesterday he was informed that embattled former FTX CEO Sam Bankman-Fried has been interviewed by local authorities as investigations continue into the collapse of the crypto giant.
The joint provisional liquidators for FTX’s Bahamian subsidiary are “guaranteed” to go after any payouts to local investors if they violated the Supreme Court freeze imposed as the crypto exchange imploded, it was revealed yesterday.
FTX’s Bahamian real estate purchases - which could be worth a collective $300m - were made through a company currently covered by US Chapter 11 bankruptcy proceedings rather than the Bahamian provisional liquidators.
BAHAMAS REBUTS FTX ACCESS CLAIMS: Securities Commission given lawful permission to transfer assets to ‘a safer space’
The Securities Commission last night debunked accusations the Government “directed unauthorised access” to FTX’s systems, and aided the withdrawal of digital assets, in violation of Bahamian and US court orders.
Bahamian bankers yesterday predicted the industry has minimal exposure to FTX after regulators demanded the sector disclose all business dealings with the collapsed crypto currency exchange.
The Bahamas’ bid to achieve full compliance with all global anti-financial crime standards before year-end may have been endangered by the implosion of the FTX crypto currency exchange, it can be revealed.
Fears were raised yesterday that the Supreme Court order freezing all assets of FTX’s Bahamian subsidiary was violated when some of the collapsed crypto currency exchange’s clients withdrew their monies late last week.
Regulators yesterday moved to protect clients of The Bahamas’ flagship crypto currency investor by “freezing” its assets, and seizing control of the company, amid reports it acquired $74m in local real estate this year alone.
The Securities Commission was yesterday investigating the crisis that has left The Bahamas’ flagship digital assets investor on the brink of collapse after a rival crypto currency exchange walked away from a rescue deal.
The seemingly-forced sale of The Bahamas’ flagship digital assets investor will not undermine the country’s ambitions to become a major “hub” in this space, a prominent banker argued yesterday.