Bahamas hired lawyers for FTX case
2023.01.04 14:37
Bahamas hired lawyers for FTX case
Budrigannews.com – In the ongoing FTX case, the Bahamas will have legal representation. According to a statement released by the law firm, the Caribbean nation selected Brown Rudnick as counsel “in certain matters of engagement related to the collapse of FTX Digital Markets Ltd.” alongside Bahamian lawyers and other experts.
The top management of FTX Digital Markets lived in the Bahamas, where the company’s headquarters are located. After former CEO Sam Bankman-Fried was extradited from the Bahamas, criminal proceedings against the members of the management team are currently being heard in the United States.
Since March, Brown Rudnick has been working for the Bahamas to create a national statement of policy regarding digital assets. In accordance with the Foreign Agents Registration Act of 1938, the company had to file a registration statement with the U.S. Department of Justice in late December after the country re-engaged it following the FTX collapse. It read:
“Some of the Registrant’s activities may involve preparation and dissemination of informational materials and otherwise engaging with U.S. government agencies and the U.S. media.”
According to the statement, Brown Rudnick may also prepare written content for social media on behalf of the Bahamas.
You would think that a Government of public relations like this one would at least trust a Bahamian firm to get the job done.
A local firm leading the charge with international help would have been the better approach. But as usual, Davis listens to the FNM when it’s too late. https://t.co/WxJps0spZ6
— Michael C. Pintard (@PintardMP) December 30, 2022
Since the beginning of the FTX case, the Bahamas has been involved, and almost immediately, disagreements with U.S. prosecutors began. The day after FTX filed for Chapter 11 bankruptcy, the Bahamas filed a competing Chapter 15 bankruptcy claim in a U.S. court.
At the beginning of the bankruptcy cases, the Securities Commission of the Bahamas (SCB) ordered that all of the digital assets held by FTX Digital Markets be transferred to a wallet it controlled. This was criticized by the new management of FTX.
This blossomed into allegations that the SCB had requested that Bankman-Seared make another token for itself and that it was endeavoring to incline toward the country’s residents in the cases against the organization.
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