Global investigators fall because the FTX collapse potentially leaves 1 million creditors

The collapse of Sam Bankman-Fried's cryptocurrency empire has triggered a comprehensive global investigation, in which dozens of authorities from all over the world circle the company, as it is confronted with more than 100,000 creditors in bankruptcy proceedings.

ftx stated in court files that in the three days since the exchange of cryptocurrency has been in contact with US state prosecutors, the securities and exchange commission and "dozens of federal, state and international supervisory authorities" and more than 100 connected companies had registered bankruptcy 11 in Delaware.

The companies are faced with at least 100,000 creditors, but according to the submission, this number could increase to more than 1 million.

"There is a considerable interest in these events for the supervisory authorities around the world," says the file.

The explanations provide a further indication of the extensive extent of the multi-billion dollar bankruptcy of the digital asset group by Bankman-Fried and the intensive legal and official examination of the shop of the 30-year-old former billionaire.

"The events that FTX hit last week are unprecedented," says the court files. "Little more than a week ago, FTX under the direction of his co-founder Sam Bankman-Fried was one of the most respected and innovative companies in the crypto industry."

The US registration takes place after the financial supervisory authorities have appointed liquidators on the Bahamas to lead an important FTX unit because the country's authorities try to protect global creditors.

The Securities Commission of the Bahamas announced on Monday that she received judicial approval to appoint two partners of PWC, one in the branch on the Bahamas and the second in Hong Kong, to overcome the handling of FTX Digital Markets, a unit in the center of the USA, the huge trading platform of the Crypto Group.

It also applied for approval to appoint Brian Simms KC, a senior partner of the Lennox Paton law firm, to be a preliminary insolvency administrator.

The authorities in the Caribbean nation in which Bankman-Fried lived, examine FTX, which used its base in Nassau to build a trading business for crypto derivatives, accepted the money of thousands of customers around the world.

"In view of the extent, urgency and the international effects of the developing events in relation to FTX, the Commission recognized that it had to do so and acted quickly.. To further protect the interests of customers, creditors and other interest groups worldwide," said the Commission.

The step took place after the Royal Bahamas Police confirmed on Sunday that they were working with the financial supervisory authority, "to examine whether there is criminal misconduct".

According to a person familiar with the matter, the US stock exchange supervisory authority Securities and Exchange Commission recently expanded an investigation against FTX that includes an investigation of its crypto credit products and the management of customer funds.

In allusion to the international dimension of the collapse of the extensive company, the authorities on the Bahamas said that they expected to "work from the regulatory authority to regulate the regulatory authority with other supervisory authorities, since this event naturally affects several jurisdiction".