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FTX ordered to pay reimbursement fees to Bahamian regulators

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  • November 22, 2022

The bankrupt cryptocurrency exchange FTX’s trouble continues to mount with each passing day, with the latest coming from the Bahamas, once its headquarters.

The Supreme Court of Bahamas issued an order in favor of the Securities Commission on November 21, ordering the troubled crypto exchange to pay reimbursement fees to the regulator for holding its digital assets post its bankruptcy filing on Nov. 11.

The Supreme Court placed FTX’s digital assets under the supervision of the Securities Commission on Nov. 12. The commission in its public notice acknowledged the judgment and noted that all reimbursements would be done after approval from the Supreme Court. The official statement obtained by Cointelegraph read:

“The Order secured today confirms the Commission is entitled to be indemnified under the law and FDM shall ultimately bear the costs the Commission incurs in safeguarding those assets for the benefit of FDM’s customers and creditors, in a manner similar to other normal costs of administering FDM’s assets for the benefit of its customers and creditors.”

The Bahamian Securities Commission’s digital asset custody services for FTX also gave fuel to the conspiracies suggesting the commission was behind the hack of multiple FTX wallets. However, the fund transfer patterns of the black hat involved money laundering techniques, which eliminated the chances of a government body behind the hack.

Related: SBF, FTX execs reportedly spend millions on properties in the Bahamas

The FTX bankruptcy filing exposed several financial holes in the disgraced crypto exchange’s balance sheet. The exchange currently owes $3 billion to 50 of its biggest creditors while the total list of creditors could exceed a million itself.

Ray III, who oversaw the Enron bankruptcy proceedings has been appointed as the new interim CEO of FTX and he didn’t hold back during the Chapter 11 filing. He described the situation as the worst he has seen in his corporate career, highlighting the “complete failure of corporate controls” and an absence of trustworthy financial information.