FTX’s Bahamas Unit Files for Bankruptcy in New York

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. There could be more than 1 million creditors in the U.S. cases that are already filed, FTX Group said Monday, adding that it has been in touch with “dozens” of U.S. and international regulatory agencies including the US Attorney’s Office, the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission. Meanwhile, authorities in the Bahamas — where FTX is based — are investigating whether any criminal misconduct occurred related to the company’s implosion, the Royal Bahamas Police Force said in a statement Sunday. Read more.