Friday, November 18, 2022

We Report, You Decide: Extortion or Bribery?

 Remember that $600 million hack of FTX that recently took place? Well, it turns out the Bahamas government and SBF were behind the hack.  FTX CEO filed a motion to transfer the FTX bankruptcy cases to the U.S. Bankruptcy Court in Delaware yesterday.  The Court approved the transfer this morning.  Although the motion attracted little attention, there are some real nuggets of information in the filing: 

In terms of the celebrity of Mr. Bankman-Fried, his unconventional leadership style, his incessant and disruptive tweeting since the Petition Date, and the almost complete lack of dependable corporate records, these Chapter 11 Cases are unprecedented. 

5. Mr. Bankman-Fried, the co-founder, and controlling owner of all of the Debtors and of FTX DM, appears to be supporting efforts by the JPLs to expand the scope of the FTX DM proceeding in the Bahamas, to undermine these Chapter 11 Cases, and to move assets from the Debtors to accounts in the Bahamas under the control of the Bahamian government. In verified messages posted through Twitter,3 Mr. Bankman-Fried just yesterday expressed profane disdain for regulators, his regrets at these Chapter 11 Cases having been filed, and disclosed his goal that “we win a jurisdictional battle vs. Delaware” to have any proceedings occur in the Bahamas, as documented in the following exchange: 

6. In addition, in connection with investigating a hack on Sunday, November 13, Mr. Bankman-Fried and Mr. Wang stated in recorded and verified texts that “Bahamas regulators” instructed that certain post-petition transfers of Debtor assets be made by Mr. Wang and Mr. Bankman-Fried (who the Debtors understand were both effectively in the custody of Bahamas authorities) and that such assets were “custodied on FireBlocks under control of Bahamian gov’t”. 

7. The Debtors thus have credible evidence that the Bahamian government is responsible for directing unauthorized access to the Debtors’ systems for the purpose of obtaining digital assets of the Debtors—that took place after the commencement of these cases. It appears that the automatic stay has been flaunted, by a government actor no less. 

The Bahamas government issued the following statement yesterday: 

Nassau, The Bahamas, Thursday 17 November 2022 - On 12 November 2022, the Securities Commission of The Bahamas (“the Commission”), in the exercise of its powers as regulator acting under the authority of an Order made by the Supreme Court of The Bahamas, took the action of directing the transfer of all digital assets of FTX Digital Markets Ltd. (“FDM”) to a digital wallet controlled by the Commissionfor safekeeping. Urgent interim regulatory action was necessary to protect the interests of clients and creditors of FDM.

Under the Digital Assets and Registered Exchanges Act, 2020 (“DARE Act”), 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 under the DARE Act.

It is not the understanding of the Commission that FDM is a party to the US Chapter 11 Bankruptcy proceedings.

Over the coming days and weeks, the Commission will engage with other regulators and authorities, in multiple jurisdictions, to address matters affecting the creditors, clients and stakeholders of FDM globally to obtain the best possible outcome.

Stay tuned.  



Anonymous said...

More and more clear evidence of why the 'investment' into this currency, or whatever it may actually be, is only for those that are looking for (1) high risk, high reward options, or (2) Ponzi schemes.

If you fall into the (2), I have some timber deeds I'd be glad to discuss with you.

BTW, has anyone seen the Representative from Madison headed toward the Bahamas lately?

Anonymous said...

Not your keys, not your coin.

Anonymous said...

FTX is not a currency, but keep posting your expertise moron at 4:29.

Anonymous said...

@4:29pm - Roatan is nowhere near the Bahamas, genius.

Anonymous said...

The ultimate rug pull.
Many Indians and Chinese have tried!
Only a cohencedence that a guy named Bankman could pull off con this big!

Anonymous said...

Can’t wait for Pearl crypto group to sound off

Anonymous said...

Damn KF - now censoring comments that might reference a particular Representative from Madison County when the post revolves around crypto?

He has posted numerous times about his promotion of crypto - but you don't have the balls to include him?

Take me off your list of sources, or informants. This is the sixth out of six posts that you have decided to kill

Moron at 4:27 said...

647b- OK, I'll continue to post my expertise. I will quickly back up from the use of the term "currancy". I will stand by the premise of everything I said otherwise.

Crypto certainly is not "currancy" What it is is still yet to be determined, other than some 'claimed' item that exists 'somewhere' in 'somebody's" wallet.

I agree. It is not a currancy. Now, you keep posting on your expertise. Mr. Moron at 6:47.

Anonymous said...

Biden has engaged in the largest money laundering operation in the history of the world.

Anonymous said...

Funny thing is, KF has completely ignored the trial and conviction of Elizabeth Holmes of Theranos. She was bizarre too. Dressed like Steve Jobs and mimicked his mannerisms. She just received an 11 year sentence.

Kingfish said...

You left out how she deepened her voice

Anonymous said...

11:13 Who's Company is on trail for tax evasion and fraud?

Anonymous said...

"OK, I'll continue to post my expertise. I will quickly back up from the use of the term "currancy". "

Expertise, huh? Most of us know how to spell "currency".

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Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

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There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

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