The crypto custodian’s bankruptcy comes as it’s been unable to honor customer withdrawals for months.
FTX, Genesis reach in-principle agreement to settle bankruptcy case
FTX and Genesis lawyers have sent a letter to the bankruptcy judge regarding a settlement agreement.
FTX bankruptcy will be ‘very expensive’ but there’s a reason: Auditor
The legal fees charged in the first months of FTX’s bankruptcy have been examined by an auditor, who has confirmed the case is “on track to be very expensive.”
FTX bankruptcy will be ‘very expensive’ but there’s a reason: Auditor
The legal fees charged in the first months of FTX’s bankruptcy have been examined by an auditor, who has confirmed the case is “on track to be very expensive.”
Voyager app set to reopen for customer withdrawals as soon as June 20
Customers will soon be able to load up the Voyager app and see how much will be available for withdrawal.
Core Scientific moves for September bankruptcy exit, expects $46M boost
Core Scientific said favorable market conditions have increased its liquidity position and its bankruptcy restructuring plan has been revised.
FTX seeks to claw back $4B from Genesis in a battle of the bankrupt
The bankrupt crypto exchange wants to recoup billions from the bankrupt crypto lender claiming it was “instrumental” to FTX’s “fraudulent” business model.
Gemini ‘supportive’ of Genesis mediation, but frustrated over pacing
Genesis is starting a 30-day meditation with its key creditors as its bankruptcy proceedings are close to hitting the four-month mark.
Eversheds Sutherland Files for Property Rights Over FTX.com Customer Assets
Lawyers asked the court for an early stage summary judgment, to ring-fence FTX assets frozen in the accounts of non-U.S. customers.
Core Scientific to transfer $20M of equipment to settle bankruptcy dispute
Millions of dollars worth of electrical equipment will be transferred to the crypto miners’ exclusive energy negotiator to settle a payments dispute.
SVB’s UK arm issues 15M pounds in bonuses after symbolic bailout: Report
Insider sources reportedly described the bonus pool as “modest,” adding that the stock held by senior execs had been “rendered worthless” following Silicon Valley Bank UK arm’s “near-collapse.”
SEC snubbed as Voyager wins court approval for sale to Binance US
The ruling allows the crypto lender a path out of its bankruptcy, but it still has to undertake some due diligence with Binance US before the sale is final.
SEC not allowed to punish Voyager advisers over bankruptcy token, says US judge
The SEC claims the transactions involved with redistributing the funds to impacted Voyager account holders will trigger U.S. securities laws.
SEC objection to Voyager-Binance.US deal questioned by US judge
A U.S. judge scolded the SEC over its non-specificity on its objection to Voyager’s restructuring deal and asked for specifics on its concerns.
Genesis eyes fast resolution to creditor disputes and bankruptcy exit in May
A lawyer for Genesis is optimistic it can resolve creditor disputes before the week is out while the firm could exit bankruptcy proceedings in four months.
Crypto lender Genesis files for bankruptcy
Crypto lender Genesis Global has become the latest firm to throw in the towel following the collapse of FTX, filing for Chapter 11 bankruptcy protection in New York.
FTX Japan drafts plan to return client funds
The Japanese subsidiary is one of 134 companies caught up in FTX’s bankruptcy proceedings but has been drafting a plan to return client funds.
Ripple to consider deals for FTX assets: Brad Garlinghouse
Brad Garlinghouse, CEO of Ripple, said the company would be interested in companies owned by FTX that serve business customers.
Did The Bahamas’ Securities Commission Take Control of FTX’s Assets? They Did
The Bahamas struck first and struck hard. Yesterday, there were rumors going around that their government was pressuring Sam Bankman-Fried to give them control of FTX’s assets. What sounded like a bizarre story, today is more than confirmed. The Securities Commission of The Bahamas released an official document announcing the takeover. Of course, they did it to protect the interests of FTX’s clients. It was urgent.
The document began:
“On 12 November 2022, the Securities Commission of The Bahamas (“the Commission”), in the exercise 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 assets of FTX Digital Markets Ltd. (“FDM”) to a digital wallet controlled by the Commission, for safekeeping. Urgent interim regulatory action was necessary to protect the interests of clients and creditors of FDM.”
To accomplish that, The Bahamas completely ignored the bankruptcy procedures opened in the United States. “It is not the understanding of the Commission that FDM is a party to the US Chapter 11 Bankruptcy proceedings,” the Securities Commission of The Bahamas said bluntly. And then, they took control of the situation. “Over the coming days and weeks, the Commission will engage with other regulators and authorities, in multiple jurisdictions, to address matters affecting the creditors, clients and stakeholders.”
In case anyone doubts it, The Bahamas clarifies that “The Commission is responsible for the administration of the Digital Assets and Registered Exchanges Act.”
FTT price chart for 11/18/2022 on FTX | Source: FTT/USD on TradingView.com
FTX’s New Management Warned About The Bahamas Intentions
Yesterday, The Wall Street Journal reported on FTX’s new management’s concerns with The Bahamas government’s intentions.
“Lawyers for FTX’s new management also said in court papers that the government of the Bahamas is disrupting the exchange’s chapter 11 case, filed last week in the U.S. Bankruptcy Court in Delaware. The papers escalate a budding dispute for control of FTX’s insolvency proceedings between its U.S. management and securities regulators in the Bahamas.”
At the time, who would’ve thought that The Bahamas was going to move that fast? Maybe we should have, because on that same article the WSJ informed us that “The Securities Commission tapped lawyer Brian Simms KC to oversee the liquidation of FTX”. Plus, “a Bahamian court approved Mr. Simms’s appointment on Thursday”. And on Tuesday, Simms “filed a chapter 15 petition in U.S.” What is a chapter 15, and what does it imply? Back to the article:
“The chapter 15 filing, if successful, could move at least a portion of FTX’s bankruptcy proceedings to courts in the Bahamas. Mr. Simms said Tuesday in a sworn declaration the Supreme Court of the Commonwealth of the Bahamas has sole jurisdiction over FTX Digital and other entities operated from the company’s “substantial office complex” in Nassau, Bahamas.”
Now that the government of The Bahamas apparently took possession of the assets, the U.S doesn’t seem to have a choice but to work with them.
Conspiracy Theory Time
Is Sam Bankman-Fried working with the government of The Bahamas on this? Among the rumors that circulated yesterday, there was one that said that he was being forced to “hack” into FTX and surrender custody of the assets. Plus, Bankman-Fried recently said that filling for Chapter 11 in the US was his biggest mistake so far. Could he be trying to revert the operation with the help of the government of The Bahamas? Something to ponder.
Featured Image by Rinald Rolle on Unsplash | Charts by TradingView
Bahamian securities regulator ordered the transfer of FTX’s digital assets
The Bahamian securities regulator clarified it directed FTX to move its digital assets to a wallet owned by the commission on Nov. 12.