Bahamas regulator moves to secure FTX's crypto
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The Securities Commission of the Bahamas announced today that it had moved FTX Digital Markets (FDM) assets to wallets in the control of the government agency.
The big picture: A venue battle over the FTX bankruptcy is underway. A filing yesterday sought to bring proceedings under the Bankruptcy Court for the District of Delaware.
What they're saying: "The Commission has the authority to apply for a judicial order to protect the interests of clients or customers of a registrant of the Commission," the Bahamian regulator said in the letter.
- It included this cryptic statement: "It is not the understanding of the Commission that FDM is a party to the U.S. Chapter 11 Bankruptcy proceedings."
- Axios contacted the regulator about the statement. It replied only to note we would receive subsequent statements on the case, without acknowledging the question.
Of note: The value of the assets on FDM is not clear.
What others are saying: "This appears to be part of a turf battle between Bahamian authorities and the U.S. bankruptcy proceedings," Matthew Gold and Dov Kleiner, bankruptcy partners at Kleinberg Kaplan, tell Axios in a statement.
Yes, but: "On its face, there is nothing alarming about this move. If the SEC secured these digital assets — in the wake of an unprecedented collapse, apparent fraud, and looming legal fight — it might be considered prudent by many," Renato Mariotti, partner with Bryan Cave Leighton Paisner, tells Axios via a spokesperson.
- He noted that authorities in the Bahamas appear willing to cooperate with other nations.
