On Nov. 14, 2022, the Securities Commission of the Bahamas (SCB) published a press release that explains the ‘Big Four’ accounting firm PWC (Pricewaterhousecoopers) has been designated as provisional liquidator in the FTX investigation. The SCB detailed that “given the magnitude” of the events surrounding FTX, the Bahamas regulator recognized that it had to “move swiftly.”
‘Big Four’ Auditing Company PWC Appointed to Provisional Liquidator Status in the FTX Investigation
According to a press release published by the SCB on Monday, Kevin Cambridge and Peter Greaves from the ‘Big Four’ accounting firm PwC were approved by the court as joint provisional liquidators. Essentially, provisional liquidators, unlike conventional liquidators, do not distribute funds as they are appointed to safeguard the bankrupt company’s remaining assets.
The SCB further noted that it is working with “other super supervisory authorities” in regard to the FTX fallout. “Over the coming days and weeks, the commission expects to engage with other supervisory authorities on a regulator-to-regulator basis as this event is multijurisdictional in nature,” the SCB detailed on Monday. Additionally, the securities regulator said that the case needed to be expedited because of the implications and magnitude of FTX’s collapse.
“Given the magnitude, urgency, and international implications of the unfolding events with regard to FTX, the commission recognized that it had to, and moved swiftly to use its regulatory powers under the Digital Assets and Registered Exchanges Act, 2020 (“DARE Act”) to further protect the interests of clients, creditors, and other stakeholders globally of FTX Digital Markets Ltd. (FDM),” the securities regulator explained.
The news follows the Bahamas regulator freezing FTX’s assets and directing the Supreme Court to appoint a provisional liquidator. The SCB further noted on Nov. 12 that the regulator did not approve “the prioritization of withdrawals for Bahamian clients.” The following day, on Nov. 13, reports detailed that the Royal Bahamas Police Force said an investigation into FTX was underway.
“A team of financial investigators from the Financial Crimes Investigation Branch are working closely with the Bahamas Securities Commission to investigate if any criminal misconduct occurred,” the Bahamian police spokesperson told the media.