The Bahamas will have legal representation in the FTX case. The Caribbean country chose Brown Rudnick as counsel “in certain matters related to the bankruptcy of FTX Digital Markets Ltd.”, along with Bahamian lawyers and other experts, according to a statement issued by the firm.
FTX Digital Markets is based in the Bahamas, and the top management of the company lived in that country. Cases against members of the management team are now being tried in the United States following the extradition from the Bahamas of former CEO Sam Bankman-Fried.
Brown Rudnick has been working for The Bahamas since March 2022 on the development of a national policy statement on digital assets. The firm was rehired by the country after the collapse of FTX, and filed a registration statement with the United States Department of Justice, as required by the Foreign Agents Registration Act of 1938, in late December, saying:
“Some of the Registrant’s activities may involve the preparation and dissemination of informational materials and other dealings with US government agencies and media.”
Brown Rudnick can also prepare written content for social media on behalf of The Bahamas, it said.
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
You’d think a PR government like this would trust at least one Bahamian company to get the job done.
A local company at the helm with international help would have been the best approach. But, as usual, Davis listens to the FNM when it’s too late.
The Bahamas has been an active participant in the FTX case since its inception, and differences with US prosecutors began almost immediately. One day after FTX filed for Chapter 11 Bankruptcy, The Bahamas filed a competing claim under Chapter 15 Bankruptcy in a US court.
The Securities and Exchange Commission of the Bahamas (SCB) ordered all of FTX Digital Markets’ digital assets to be transferred to a wallet it controlled following the initiation of the bankruptcy cases, prompting criticism from FTX’s new management that became on allegations that the SCB had asked Bankman-Fried to create a new token for it and that it was trying to favor the country’s citizens in lawsuits against the company.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.