The problems at the now-bankrupt crypto exchange FTX are continuing to mount. Since the Bahamas was once the headquarters for FTX, the issues now come from here. On November 21, the Supreme Court of Bahamas ordered the country’s regulator to take the FTX digital assets into custody.
As mentioned, many suspected the Bahamian Securities Commission was behind the hack of many FTX wallets. But the black hat party involved in the attack on FTX performed money laundering transfers, so there are no chances a government had anything to do with this.
The balance sheet of the crypto exchange exposed with the FTX bankruptcy filing showed some financial holes. FTX owes about $3 billion to 50 of its biggest creditors. And the bad news is that the list of creditors might total a million.
John Ray III oversaw the bankruptcy proceedings for Enron, and he is now FTX’s new interim CEO. He talked about the bankruptcy situation as one of the worst he could have encountered during his career. Ray III believes there’s no trustworthy information or corporate controls at the exchange.
In a different case involving multiple jurisdictions and the implosion at FTX, the Bahamas court agreed that one part of FTX’s restructuring case should go to a Delaware US court. In addition, liquidators of one FTX affiliate decided that the lawsuit filed in New York should move to Delaware.
Now FTX is being held accountable for all the costs associated with the digital wallet containing the assets of FTX Digital Markets. And the exchange will continue to be supervised by The Securities Commission of the Bahamas. In addition, over 100 units of FTX’s assets reserve are under the oversight of a federal judge.