Bahamian authorities in a share with FTX?
2022.12.16 12:17
Bahamian authorities in a share with FTX?
Budrigannews.com – An attorney for the provisional liquidators overseeing FTX’s assets has refuted claims that officials in the Bahamas were using the crypto exchange’s collapse for the benefit of locals first.
Partner Jason Zakia of White & Case stated that debtors’ claims regarding FTX assets and Bahamian authorities were “wholly without merit” during a hearing for FTX Trading’s bankruptcy on December 16. According to Zakia, the legal team represented provisional liquidators whose appointments were approved by the Supreme Court of the Bahamas in November. Prior to FTX’s bankruptcy, the team had “no involvement” in the company’s demise.
According to Zakia, “there are a multitude of jurisdictions that have legitimate and important interests in any international case like this, and that certainly includes the Bahamas.” Respect should be given to the independent legal system of the Bahamas. Numerous accusations and slanders have been leveled against the Bahamas, specifically its government and legal system.
He clarified:
“One of the allegations […] that Bahamians were somehow facilitating payments off the system to Bahamian residents in preference to other creditors. When you look at the evidence, they have that exactly backwards. [Joint provision liquidators] were appointed specifically as part of an effort to stop such activity.”
On November 11, FTX submitted a Chapter 11 bankruptcy petition to the United States District Court for Delaware. As part of the bankruptcy proceedings, the court has held a few hearings about how the company’s assets might be handled in light of the interests of FTX debtors and creditors. The cryptocurrency exchange’s naming rights agreement for the FTX Arena is likely to be the subject of the next public hearing, which is scheduled for January 11.
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Sam Bankman-Fried, the former CEO of FTX, was sentenced to prison in the Bahamas following a bail hearing on December 13 in connection with charges brought by the United States Department of Justice. Individuals involved have been notified that the government agency is “not done” making arrests.
