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Bahamas Watchdog Appoints Liquidators For FTX

 |  November 15, 2022

The Securities Commission of The Bahamas, the country in which now-bankrupt cryptocurrency exchange FTX is headquartered,  has announced the appointment of liquidators for the company.

The commission said in a Monday (Nov. 14) press release that it appointed attorney Brian Simms as a court-supervised provisional liquidator Thursday (Nov. 10), and the Supreme Court approved Kevin Cambridge and Peter Greaves of PricewaterhouseCoopers (PwC) as joint provisional liquidators Monday.

“Given the magnitude, urgency and international implications of the unfolding events with regard to FTX, the commission recognized that it had to, and moved swiftly to use its regulatory powers under the Digital Assets and Registered Exchanges Act, 2020 (DARE Act) to further protect the interests of clients, creditors and other stakeholders globally of FTX Digital Markets Ltd. (FDM),” the commission said in the release.

Read more: Regulators All Over The World Investigate FTX Collapse

The commission is the lead authority in The Bahamas investigating FDM, FTX Trading, Alameda Research and other related entities that operated in the country, according to the release.

“Over the coming days and weeks, the commission expects to engage with other supervisory authorities on a regulator-to-regulator basis as this event is multijurisdictional in nature,” the commission said in the release.

As PYMNTS reported Tuesday, the downfall of FTX has triggered a worldwide regulatory investigation and could leave the company dealing with more than 1 million creditors.

A court filing Monday in the company’s Chapter 11 bankruptcy case before a federal court in Delaware said FTX and its associated companies are facing more than 100,000 creditors and that “[in] fact, there could be more than one million creditors.”

The announcement from the commission in The Bahamas also came a day after it was reported that the commission and the island’s police force had interviewed former FTX CEO Sam Bankman-Fried to determine whether there was criminal conduct involved in FTX’s collapse.