• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: FTX Trust Sues Genesis To Recover $1 Billion Allegedly Misappropriated By SBF
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: FTX Trust Sues Genesis To Recover $1 Billion Allegedly Misappropriated By SBF
Bahamas Liquidators Discover Possibilities Of Fraud From FTX

Bahamas Liquidators Discover Possibilities Of Fraud From FTX

Denis
by Denis
2 years ago
·
Posted in Crypto News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Still, on the ongoing FTX fiasco, the embattled crypto exchange has got it hot from all corners. On one side is the intensive investigation by the regulators, then legal actions from creditors. A few days after the collapse, the legal actions against the FTX exchange increased. Moreover, the latest update from the bankruptcy filings suggests the firm committed severe offences.

Related Reading: How The Genesis Withdrawal Halt Impacts The Entire Crypto Market

FTX’s Bahamian liquidators submitted some documents to the Southern New York District’s Bankruptcy Court. The documents revealed that Joint Provisional Liquidators’ discovered fraud and mismanagement on the part of the crypto exchange.

Given this development, the filings requested restricted sales of the company’s assets until the court reached a verdict. The court would rule its judgment under Chapter 15 of the United States bankruptcy code, which handles insolvency cases involving many countries.

FTX Faces Multiple Legal Actions

Furthermore, in a Tuesday filing, the provisional liquidator in charge of the FTX bankruptcy proceedings in the Bahamas, Brain Simms, made some arguments. First, brain Simms argued the validity of a Chapter 11 bankruptcy filing by the exchange’s subsidiary FTX Trading and 100 other affiliates in Delaware court.

The lawyer noted that FTX Digital is not part of the Delaware Petition. However, he added that the provisional liquidator has the exclusive right to take action, including filing the Delaware petition.

Simms also said he rejects the validity petitions that place FTX affiliates in bankruptcy as he has not authorized such acts in writing or otherwise. The attorney emphasized that the FTX brand and all the core management personnel operated from the Bahamas.

While he does not seek the dismissal of the bankruptcy proceedings in the US, he requested that the court recognize the Bahamian legal proceedings.

Meanwhile, FTX investors took legal action against Sam Bankman-Fried, former CEO of the now-bankrupt crypto exchange. The lawsuits alleged that some yield-bearing accounts were unregistered securities sold in the United States illegally.

The investors seek damages worth $11 billion from the celebrities that promoted SBF lead crypto exchange, including Tennis Star Naomi Osaka and NFL quarterback Tom Brady.

SBF And FTX Caught Under Regulators’ Radar

The state securities regulators went against many crypto lenders because of unregistered crypto yield products. For example, the Securities and Exchange Commission stopped a similar product on Coinbase in September 2021. The SEC chief, Gary Gensler, also suspected foul play due to the unusually high yields attached to such accounts.

Reports revealed the SEC and CFTC are investigating FTX for the alleged embezzlement of $10 billion worth of customers’ assets to Alameda Research.

Bahamas Liquidators Discover Possibilities Of Fraud From FTX
FTT price tumbles below $1.50 l FTTUSDT on Tradingview.com

Law enforcement officers are contemplating whether to extradite SBF to the United States for questioning. The Bahamian Prime Minister also commented on the SBF Crypto exchange crisis. The minister said that the legal framework in the industry could not prevent the collapse.

Related Reading: Elon Musk Looks Toward Leadership Change At Twitter, Will This Affect Dogecoin?
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Denis

Denis

Follow

Denis is a passionate writer and editor and he's been writing in finance industry for almost 6 years.

Full Profile

Related Posts

hyperliquid hype hypeusd

Hyperliquid (HYPE) Rallies Toward $50 as Hypurr NFT Frenzy Sends Floor Above $60K

2 hours ago
crypto, Bitcoin

Ukrainians Shield From War’s Economic Impact With Bitcoin, Crypto Investment Strategy, Survey Finds

9 hours ago
Jump Crypto’s SIMD-0270 Upgrade to Boost Solana’s Speeds – Snorter Token to 1000x?

Jump Crypto’s SIMD-0270 Upgrade to Boost Solana’s Speeds – Snorter Token to 1000x?

11 hours ago
Best Altcoins to Watch as Altcoin Season Prepares for a Q4 Explosion

Best Altcoins to Watch as Altcoin Season Prepares for a Q4 Explosion

13 hours ago
DeepSeek's Best Crypto Presales to Buy for Uptober: AI Has Spoken

DeepSeek’s Best Crypto Presales to Buy for Uptober: AI Has Spoken

13 hours ago
Bitchat

Messaging App Bitchat Sees Unprecedented Boom Amid Madagascar Turmoil

16 hours ago
Please login to join discussion

Premium Sponsors

Press Releases

  • 上線倒計時:僅剩25天可搶購 Snorter Bot 代幣

    4 days ago
  • 加密錢包掀起發幣熱潮 Best Wallet...

    6 days ago
  • Bitcoin Hyper

    ChatGPT предсказва следващата 1000x...

    7 days ago
  • Snorter надхвърли $4 милиона след...

    1 week ago
  • Experience the Next Chapter of Pickleball with the $PKL Token Presale.

    Experience the Next Chapter of Pickleball with the $PKL...

    2 weeks ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.