Ibahagi ang artikulong ito
Sign Up
- Back to menuPrices
- Back to menuResearch
- Back to menu
- Back to menu
- Back to menu
- Back to menu
- Back to menuWebinars
Bahamian FTX Liquidators Cite ‘Serious Fraud and Mismanagement’ in Court Filings
Court-appointed liquidators in the Bahamas are seeking to halt asset sales while the complex enterprise is wound up.
There are signs that “serious fraud and mismanagement” occurred at crypto exchange FTX, according to court filings made by the company’s Bahamian liquidators late Wednesday.
The crypto exchange, headquartered in the Bahamas, declared bankruptcy in the U.S. after revelations from CoinDesk regarding a blurring of lines with sister trading firm Alameda Research's financials led to investor panic and significant outflows.
STORY CONTINUES BELOW
Huwag palampasin ang isa pang kuwento.Mag-subscribe sa State of Crypto Newsletter ngayon. Tingnan ang Lahat ng mga Newsletter
“The Joint Provisional Liquidators’ findings to date indicate that serious fraud and mismanagement may have been committed” with respect to the group, said the document filed in the U.S. Bankruptcy Court of the Southern District of New York. The documents were filed on behalf of Brian Simms, Kevin Cambridge, and Peter Greaves, who have been put in charge of winding up the company’s affairs in the Bahamas.
Read more: Bahamian Supreme Court Approves Liquidators for FTX Assets
FTX filed for bankruptcy in Delaware on Nov. 11, but that has been disputed by Simms, who in a Tuesday legal filing said that the whole group was, in practice, managed from the Bahamas.
The Wednesday filing seeks to block the sale of any FTX assets provisionally, until courts reach a formal decision under Chapter 15 of the U.S. bankruptcy code, which deals with cross-border insolvency.
Media reports last week that said Alameda owes FTX around $10 billion were “essentially confirming that FTX Brand’s management misused customer deposits on the FTX digital asset exchange to extend undisclosed loans to Alameda,” the filing added, also citing the failed $500 million loan to Voyager in May.
The company, which includes around 134 subsidiaries and affiliates worldwide, is caught in messy legal proceedings to liquidate and repay as many as one million creditors.
FTX and Alameda founder Sam Bankman-Fried resigned on Friday and it is possible the company will face criminal proceedings, an official notice from the Bahamas Securities Commission said Sunday.
Read more: Bahamian Liquidators Say FTX Wasn’t Authorized to File for Bankruptcy in the US
Jack Schickler
Jack Schickler was a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He previously wrote about financial regulation for news site MLex, before which he was a speechwriter and policy analyst at the European Commission and the U.K. Treasury. He doesn’t own any crypto.
Higit pang Para sa Iyo
Crypto Industry Asks President Trump to Stop JPMorgan’s 'Punitive Tax' on Data Access
A coalition of fintech and crypto trade groups is urging the White House to defend open banking and stop JPMorgan from charging fees to access customer data.
Ano ang dapat malaman:
- Ten major fintech and crypto trade associations have urged President Trump to stop big banks from imposing fees that could hinder innovation and competition.
- JPMorgan's plan to charge for access to consumer banking data may debank millions and threaten the adoption of stablecoins and self-custody wallets.
- The CFPB's open banking rule, which mandates free consumer access to bank data, is under threat as banks have sued to block it, and the CFPB has requested its vacatur.
