The Supreme Court of Bahamas has approved liquidators for FTX assets. It appointed two insolvency experts at Pricewaterhouse Coopers (PwC) as provisional liquidators overseeing the crypto exchange’s assets.
Last Thursday, the Bahamian regulators froze assets of the FTX subsidiary, FTX Digital Markets, and related parties. The Commission did not stop there; they also applied to the Supreme Court to appoint a provisional liquidator.
Following the Commission’s application, Mr. Brian Simms, K.C. (Lennox Paton Counsel and Attorney-at-Law), was appointed as provisional liquidator of FTX Digital Markets Ltd. (FDM). Hence, no FDX assets or that of the clients could be transferred, assigned, or dealt with without his written approval.
The court has further approved Kevin Cambridge and Peter Greaves of Pricewaterhouse Coopers (“PwC”) to also be in charge of FTX assets.
In a press release, the Commission stated,
“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 also noted that it would meet with other supervisory authorities in the coming weeks since the issue is multijurisdictional. They also promised to offer full assistance to the police if necessary.
