Author: Syedur Rahman 24 November 2022
With crypto exchange FTX now facing bankruptcy hearings and a number of investigations, Syed Rahman wrote about the issues involved and the effect on the whole cryptocurrency sector.
In his piece, Syed details the events that preceded FTX’s downfall and the response from the authorities in the US and the Bahamas, where the exchange was registered.
He emphasises that while FTX and its 130 associated entities have begun the voluntary process of bankruptcy under Chapter 11 in the US, the full facts are not yet known.
But Syed predicts that when the full analysis of FTX’s collapse is made, it is likely to touch on the issue of jurisdictional arbitrage – the taking advantage of discrepancies between competing legal jurisdictions by “shopping around’’ for the weakest anti-money laundering and know-your-customer regimes.
He argues that industry-wide standards and practices are needed. Regulators are watching the crypto sector more closely than they were previously – but more needs to be done.
Syed says that FTX’s collapse is likely to have a profound impact on the future of crypto markets.
Syed's article featured in The Banker (Subscription required).
Syedur Rahman is known for his in-depth experience of serious fraud, white-collar crime and serious crime cases, as well as his expertise in worldwide asset tracing and recovery, international arbitration, civil recovery, cryptocurrency and high-stakes commercial disputes.