The Securities Commission of The Bahamas announced that the Supreme Court has approved a claim subordination agreement with the joint official liquidators of FTX Digital Markets Ltd, placing the Commission’s USD 221.55 million regulatory penalties claim behind customer and other creditor recoveries. The arrangement reprioritises payments to all customers and other creditors of FTX Digital Markets, including any interest due to customers, ahead of the Commission’s allowed regulatory claim. The liquidators sought court approval based on their powers to enter into agreements and perform obligations under the Amended Global Settlement Agreement dated 12 August 2024, and the Commission’s penalties claim relates to breaches of the Digital Assets and Registered Exchanges Act and the Financial Transactions Reporting Act identified through regulatory investigations.
Bahamas Securities Commission 2025-01-29
Securities Commission of The Bahamas subordinates USD 221.55 million FTX Digital Markets penalties claim under Supreme Court sanctioned agreement
The Securities Commission of The Bahamas announced that the Supreme Court approved a claim subordination agreement with the joint official liquidators of FTX Digital Markets Ltd, prioritizing customer and creditor recoveries over the Commission’s USD 221.55 million regulatory penalties claim. This ensures payments to customers and creditors, including interest, precede the Commission’s claim. The penalties relate to breaches of the Digital Assets and Registered Exchanges Act and the Financial Transactions Reporting Act.