The Securities Commission of The Bahamas, established in 1995, oversees securities, investment funds, capital markets, and digital assets. The Digital Assets and Registered Exchanges Act, 2024, which came into effect in July 2024, expanded the regulatory framework for digital assets. The Commission's claim was based on investigations into FTX DM's regulatory breaches. More information about the Commission and the DARE Act 2024 can be found on the Securities Commission of The Bahamas' website.
Key takeaways:
- The Supreme Court of The Bahamas approved an agreement for FTX Digital Markets Ltd. to subordinate the Securities Commission of The Bahamas' $221.55 million regulatory claim.
- The Claim Subordination Agreement allows the reprioritization of payments to FTX DM's customers and other creditors before the Commission's claim.
- The agreement was sanctioned by Justice L Klein on January 29, 2025, based on the JOLs' powers under the Amended Global Settlement Agreement.
- The Commission's claim was related to breaches of the Digital Assets and Registered Exchanges Act and the Financial Transactions Reporting Act.