The Bahamas will be represented by counsel in the developing FTX litigation. According to a statement issued by the legal firm, the Caribbean country selected Brown Rudnick to represent it “in some areas of engagement connected to the collapse of FTX Digital Markets Ltd.” with Bahamian attorneys and other professionals.
The top management of FTX Digital Markets resided in the Bahamas, where the company’s headquarters are located. After former CEO Sam Bankman-Fried was extradited from the Bahamas, cases against the management team are now being heard in the US.
Since March 2022, Brown Rudnick has been working on behalf of the Bahamas to create a national policy statement on digital assets. After the FTX collapse, the nation once again hired the firm, which late in December filed a registration statement with the U.S. Department of Justice in accordance with the 1938 Foreign Agents Registration Act, stating:
“Some of the Registrant’s operations may entail the development and distribution of educational materials and other interactions with U.S. government organizations and the U.S. media.”
According to the statement, Brown Rudnick may also provide written content for social media on behalf of the Bahamas.
You would think that a Government of public relations like this one would at least trust a Bahamian firm to get the job done.
A local firm leading the charge with international help would have been the better approach. But as usual, Davis listens to the FNM when it's too late. https://t.co/WxJps0spZ6
— Michael C. Pintard (@PintardMP) December 30, 2022
The Bahamas has been involved in the FTX case since the beginning, and disagreements with American prosecutors started almost right away. The Bahamas filed a competing Chapter 15 bankruptcy claim in a U.S. court the day following FTX’s Chapter 11 bankruptcy filing.
After the start of the bankruptcy cases, the Securities Commission of the Bahamas (SCB) ordered the transfer of all FTX Digital Markets digital assets to a wallet under its control. This prompted criticism from the new FTXmanagement, which grew into claims that the SCB had asked Bankman-Fried to create a new token for it and that it was attempting to favor the nation’s citizens in the claims against the company.