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> But does FTX have the right to agree to this? That makes no sense. They are incorporated under Bahamianan law, so that law takes precedence over any contract

> But does FTX have the right to agree to this? That makes no sense. They are incorporated under Bahamianan law, so that law takes precedence over any contractual agreement. I.e., FTX cannot enter into a contract that declares implicitly or explicitly that they won't follow said law.

legutierr 4y ago
FTX is incorporated in Antigua and Barbuda and headquartered in The Bahamas. https://en.wikipedia.org/wiki/FTX_(company) https://en.wikipedia.org/wiki/FTX_(company)
- hef19898 4y ago
  FTX Trading Ltd. has a bunch of legal entities on the Bahamas. As shown in the latest Delaware court fillings. The Bahamas have at least jurisdiction over those legal entities and their assets. That FTX as a whole was unable, and/or unwilling, to keep proper track of accounts, cash and assets across their overly complicated corporate structure is hardly the Bahamas fault.
  - legutierr 4y ago
    OK, yes, there are Bahamian entities over which Bahamian authorities likely have jurisdiction. But given what you say with regards to the complexity of FTX's corporate structure, it's likely difficult to determine that the assets that were transferred to Bahamian authorities actually belong to those Bahamian entities. Maybe it's better that these assets are in the hands of Bahamian authorities, but it is highly questionable that the transfer happened after the Delaware filing, and that it was made in such a sloppy way that destroyed so much value. My albeit very basic understanding is that once the bankruptcy filing was made in Delaware, the Bahamas had some obligation to defer to the Delaware courts. It makes one wonder if this was actually an official action to begin with, and was not instead given a post hoc imprimatur only when it became obvious that the transfers could not be hidden.
    - xg15 4y ago
      Indeed - which is probably why the attorneys of the Delaware proceedings have applied to combine both cases. Apparently, there is a court hearing scheduled for monday about that motion. I imagine the status of the seized funds will be one of the main topics of that hearing.

legutierr 4y ago

FTX is incorporated in Antigua and Barbuda and headquartered in The Bahamas. https://en.wikipedia.org/wiki/FTX_(company) https://en.wikipedia.org/wiki/FTX_(company)

hef19898 4y ago
FTX Trading Ltd. has a bunch of legal entities on the Bahamas. As shown in the latest Delaware court fillings. The Bahamas have at least jurisdiction over those legal entities and their assets. That FTX as a whole was unable, and/or unwilling, to keep proper track of accounts, cash and assets across their overly complicated corporate structure is hardly the Bahamas fault.
- legutierr 4y ago
  OK, yes, there are Bahamian entities over which Bahamian authorities likely have jurisdiction. But given what you say with regards to the complexity of FTX's corporate structure, it's likely difficult to determine that the assets that were transferred to Bahamian authorities actually belong to those Bahamian entities. Maybe it's better that these assets are in the hands of Bahamian authorities, but it is highly questionable that the transfer happened after the Delaware filing, and that it was made in such a sloppy way that destroyed so much value. My albeit very basic understanding is that once the bankruptcy filing was made in Delaware, the Bahamas had some obligation to defer to the Delaware courts. It makes one wonder if this was actually an official action to begin with, and was not instead given a post hoc imprimatur only when it became obvious that the transfers could not be hidden.
  - xg15 4y ago
    Indeed - which is probably why the attorneys of the Delaware proceedings have applied to combine both cases. Apparently, there is a court hearing scheduled for monday about that motion. I imagine the status of the seized funds will be one of the main topics of that hearing.