Bahamas-based lawyer Brian Simms, one of the provisional liquidators appointed by the Bahamas Supreme Court, said in a court filing that FTX was not authorized to file for bankruptcy in the U.S., adding that he “reject[s] the validity of any purported attempt to place FTX affiliates in bankruptcy.”

Securities Commission of the Bahamas (SCB) published a press release that explains the ‘Big Four’ accounting firm PWC 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.”  Essentially, provisional liquidators, unlike conventional liquidators, do not distribute funds as they are appointed to safeguard the bankrupt company’s remaining assets.

The Supreme Court of the Bahamas approved provisional liquidators to oversee FTX Digital Markets Ltd.'s assets, according to the Securities Commission of the Bahamas.

Crypto exchange FTX was not required to allow Bahamas-based customers to withdraw their funds, a local financial regulator said Saturday.