Collapsed cryptocurrency exchange FTX remains the subject of "an active and ongoing investigation" by Bahamian authorities, Bahamian Attorney General Ryan Pinder said on Sunday, as he praised the Bahamas' regulatory regime and swiftness with which it responded to the crisis, Reuters reported. FTX, which had been among the world's largest cryptocurrency exchanges, is headquartered in the Bahamas. The firm, whose liquidity crunch forced the company to declare bankruptcy on Nov. 11, is the subject of investigations by Bahamian and U.S. authorities.
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Bahamas
The Securities Commission of The Bahamas said on Thursday it has ordered all digital assets of FTX Digital Markets Ltd (FDM) transferred to a digital wallet controlled by the Commission for safekeeping, Reuters reported. "Urgent interim regulatory action was necessary to protect the interests of clients and creditors of FDM," the commission said in a statement. Read more.
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FTX Digital Markets, the Bahamas-based unit of the recently collapsed cryptocurrency trading platform, has filed for bankruptcy protection in the U.S., CNN reported. The company filed Tuesday in New York court under chapter 15. The move comes after the crypto exchange’s U.S.-based arm, FTX Group, abruptly filed for bankruptcy Friday after facing a “severe liquidity crisis.” FTX founder Sam Bankman-Fried resigned as CEO the same day. FTX’s rapid collapse marked a stunning downfall for one of the biggest and most powerful players in the crypto industry.
Liquidators for FTX's Bahamas unit, FTX Digital Markets, have asked a New York City court to recognize its bankruptcy in the Bahamas, saying they "reject the validity" of the cryptocurrency exchange's U.S. bankruptcy proceedings, Saltwire reported. The Bahamas liquidators, who were appointed on Nov. 10 by the Securities Commission of the Bahamas, filed a chapter 15 petition late Tuesday in U.S. bankruptcy court in New York, asking the court to help them obtain records from FTX and block asset transfers to protect creditors of the Bahamas-based company.
The Securities Commission of the Bahamas said that it froze the assets of FTX Digital Markets Ltd. and related parties on Thursday and appointed a provisional liquidator, WSJ Pro reported. FTX Digital Markets, based in the Bahamas, is a subsidiary of FTX Trading Ltd. owned by billionaire Sam Bankman-Fried. The powers of the directors of FDM have been suspended and no assets held by the firm can be transferred without the provisional liquidator’s approval, the commission said.
Insolvency practitioners yesterday said the Attorney General’s ambition for The Bahamas to become “the near shore Delaware of corporate structuring” was both “achievable” and “appropriate” if the correct reforms are made, the Bahamas Tribune reported. Ed Rahming, Intelisys (Bahamas) founder and managing director, told Tribune Business that this nation would need to ensure it has both the right legislative framework and necessary human capital expertise - both Bahamian and expatriate - to fulfill the vision unveiled by Ryan Pinder during the Senate Budget debate.
Cavalier Construction’s insolvency took down its equipment supplier affiliate even though the latter had generated a net profit in each of the previous four years, its liquidators have revealed, the Nassau Tribune reported. Andrew Davies and Kendrick Christie, the Crowe Bahamas accountants and partners, in their first report to the Supreme Court on Bobcat Bahamas’ winding-up disclosed that it was placed into liquidation only because it lost the services and back office support provided by Cavalier when the latter collapsed in January 2020.
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A Bahamian broker/dealer’s liquidator has voiced concern that its majority shareholder and then-senior management removed over $8m in the two-and-a-half years prior to its insolvency, The Tribune reported. Ed Rahming, the Intelisys (Bahamas) founder and managing director, in his second report to the Supreme Court hinted he was exploring the possibility of initiating legal action against Pacifico Global’s majority shareholder, Arturo Klein, to at least recover some of the $4.263m paid out to him. “The liquidator has noted...
China Construction America Inc. was accused in a lawsuit of ripping off the original developer of the long-delayed $3.9 billion Baha Mar resort in the Bahamas by submitting fraudulent bills and collecting undeserved fees, Bloomberg News reported. BML Properties Ltd., led by wealthy Bahamas businessman Sarkis Izmirlian, sued CCA Tuesday claiming the state-owned Chinese contractor pulled off a “massive fraud” to enrich itself at BML’s expense, leading to the collapse of the project in 2015.
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The Bahamas resort Baha Mar has taken more than 10 years to open, but on Friday, the $4.2 billion, 1,000-acre development on a half-mile of beachfront in Nassau is expected to finally debut — at least, in part, the International New York Times reported. Baha Mar comprises three hotel brands — Grand Hyatt, SLS Hotels and Rosewood Hotels & Resorts — for a total of 2,300 rooms. Grand Hyatt, with 1,800 rooms, is the largest and will be previewing on opening day; with nightly rates in the mid-$300 range, it’s also the most affordable.
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