• FTX seeks to exclude its Bahamian unit from any claim over company assets.
• The filing accuses Bahamian authorities of assisting SBF’s efforts to avoid prosecution.
• FTX DM was established in May 2022 and served as an offshore haven for an ongoing fraudulent scheme.
FTX Seeks Exclusion From Company Assets
FTX seeks to exclude the company’s Bahamian unit from any claim over company assets, according to a legal filing. The filing claims that FTX DM was not crucial to the operations of the company but was established in May 2022 and served as an offshore haven for an ongoing fraudulent scheme.
Bahamian Authorities Accused Of Assisting SBFs Efforts To Avoid Prosecution
According to a legal filing on 19 March, FTX seeks to exclude the company’s Bahamian unit from any claim over company assets, claiming that it was a mere shell set up to further alleged fraud by founder Sam Bankman-Fried „SBF.“ The filing accuses Bahamian authorities of assisting SBF’s efforts to avoid prosecution.
FTX DM Placed Into Liquidation By Bahamas Courts
The Bahamas courts placed the FTX’s Bahamas arm, FTX Digital Markets (FTX DM), into liquidation on 10 November, and the larger group filed for bankruptcy in Delaware the next day. This created a perplexing situation that has already resulted in disagreements over who has access to corporate data held centrally.
Close Relationship With Bahamian Agencies
According to the filing, SBF and other FTX executives maintained a close relationship with Bahamian law enforcement agencies, including the Prime Minister, Attorney General, and Securities Commission. It also states that the FTX founder intended to use that relationship to reduce his criminal and civil term if the massive fraud was discovered.
Cooperation Between Ray And Liquidators Reached In January
SBF has declared innocence of wire fraud charges stemming from his time as the CEO of FTX while other former executives have entered guilty pleas for criminal charges. However Ray and the Bahamian liquidators came to an understanding of cooperation in January