FTX filed for bankruptcy protection in the US on Friday, while in the Bahamas, the securities regulator froze the assets of its subsidiary. The Bahamas’ Securities Commission said it had also applied to appoint a provisional liquidator of the company.
In the update over the weekend, the Bahamas regulators said any withdrawals involving clients in the Bahamas may be void and that funds may be clawed back as part of the insolvency efforts.
Clawbacks. Depending upon how you read US bankruptcy law any, and every, payment out of FTX for the last 90 days could be recalled. Even, the past year. And if they decide it was a Ponzi (unlikely in my view, to be fair) then all payments ever could be pulled back in. As happened with Madoff.
The fun has only just started.