According to the SCB, they have decided to hire one of the "Big Four" accounting firms, which is PwC (Pricewaterhousecoopers), and it was added that they needed to move quickly due to the magnitude of the problem that was associated with FTX.
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On Monday, the SCB issued a press release in which it stated that they had appointed Peter Greaves and Kevin Cambridge from PwC as joint provisional liquidators, and that the court had also given its approval for this appointment.
Provisional liquidators, in contrast to traditional liquidators, are not accountable for the distribution of monies; rather, it is their role to ensure that the assets of the insolvent company are protected.
The authority that regulates financial transactions in the Bahamas also mentioned that they were working together with other regulatory bodies to address the repercussions from the FTX scandal.
On Monday, the Securities and Exchange Commission (SCB) announced that because the failure of FTX was a multijurisdictional issue, they would be communicating with other authorities over the next few days and weeks in order to address the issue on a regulator-to-regulator basis.
In addition, the securities regulator stated that they needed to move the case along more quickly because of the magnitude of the repercussions that are associated with the fall of the crypto empire.
Previously Taken Steps
In light of the international ramifications, the sense of urgency, and the magnitude of the damage caused by FTX, the securities regulator in the Bahamas stated that they had no choice but to move quickly in order to prevent further problems.
It stated that it had used its regulatory powers for the purpose of protecting the interests of creditors, clients, and other global stakeholders of FTX Digital Markets Ltd. These regulatory powers are granted by the DARE Act, which is legislation relating to digital assets and the exchanges that are registered in the country.
A request for the appointment of a provisional liquidator had been made to the Supreme Court of the Bahamas by the Bahamas regulator before the assets of FTX were froze and the request was made.
Additionally, on November 12th, the regulator of the Bahamas stated that they had not given their approval for prioritizing the withdrawals of FTX customers located in the Bahamas.
On November 13th, it was announced that the Royal Police Force in the Bahamas had commenced an investigation into the operations of FTX as a result of the announcement made on the previous day.
The Financial Crimes Investigation Branch of the Royal Bahamas Police Force has reportedly assembled a group of financial investigators, according to a spokesperson for the Royal Bahamas Police Force.
They were collaborating with the Securities Commission of the Bahamas (SCB) in order to investigate whether or not there had been any unethical or illegal behavior in relation to FTX.
It is important to note that although FTX had temporarily stopped processing withdrawal requests for its customers, it has since started doing so again for its users in the Bahamas.
The exchange cited regulatory requirements as the reason for giving this option to its Bahamian users, which had obviously drawn the ire of other users of the platform.
Concerns about a possible lack of oversight have also been raised as a result of the fact that FTX had been conducting its business from an offshore location such as the Bahamas.
People are forced to use these offshore companies as a result of the Securities and Exchange Commission's (SEC) decision to provide a regulatory framework for the cryptocurrency space. This decision has drawn criticism from lawmakers in the United States.