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Bahamian FTX Liquidators Cite ‘Serious Fraud and Mismanagement’ in Court Filings
Court-appointed liquidators in the Bahamas are seeking to halt asset sales while the complex enterprise is wound up.
Updated Nov 17, 2022, 9:24 a.m. Published Nov 17, 2022, 9:24 a.m.
There are signs that “serious fraud and mismanagement” occurred at crypto exchange FTX, according to court filings made by the company’s Bahamian liquidators late Wednesday.
The crypto exchange, headquartered in the Bahamas, declared bankruptcy in the U.S. after revelations from CoinDesk regarding a blurring of lines with sister trading firm Alameda Research's financials led to investor panic and significant outflows.
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“The Joint Provisional Liquidators’ findings to date indicate that serious fraud and mismanagement may have been committed” with respect to the group, said the document filed in the U.S. Bankruptcy Court of the Southern District of New York. The documents were filed on behalf of Brian Simms, Kevin Cambridge, and Peter Greaves, who have been put in charge of winding up the company’s affairs in the Bahamas.
Read more: Bahamian Supreme Court Approves Liquidators for FTX Assets
FTX filed for bankruptcy in Delaware on Nov. 11, but that has been disputed by Simms, who in a Tuesday legal filing said that the whole group was, in practice, managed from the Bahamas.
The Wednesday filing seeks to block the sale of any FTX assets provisionally, until courts reach a formal decision under Chapter 15 of the U.S. bankruptcy code, which deals with cross-border insolvency.
Media reports last week that said Alameda owes FTX around $10 billion were “essentially confirming that FTX Brand’s management misused customer deposits on the FTX digital asset exchange to extend undisclosed loans to Alameda,” the filing added, also citing the failed $500 million loan to Voyager in May.
The company, which includes around 134 subsidiaries and affiliates worldwide, is caught in messy legal proceedings to liquidate and repay as many as one million creditors.
FTX and Alameda founder Sam Bankman-Fried resigned on Friday and it is possible the company will face criminal proceedings, an official notice from the Bahamas Securities Commission said Sunday.
Read more: Bahamian Liquidators Say FTX Wasn’t Authorized to File for Bankruptcy in the US
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- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
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The Republican lawmaker who is among the core negotiators on the U.S. market structure bill said the White House has rejected some ethics language.
What to know:
- Sen. Cynthia Lummis (R-Wyo.) said she is negotiating with the White House on behalf of Senate Democrats trying to insert ethics provisions into Congress' market structure legislation.
- Lawmakers should reveal a new draft market structure bill by the end of the week and hold a markup hearing next week, she said.
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