The FTX story in Nassau, and where payouts stand

For about fourteen months, The Bahamas was home to one of the biggest names in crypto. FTX moved its headquarters to Nassau in September 2021, hosted a star-studded conference at Baha Mar in April 2022 and collapsed in November 2022. Its Bahamian company, FTX Digital Markets Ltd, has been in liquidation ever since. This page sets out what happened in The Bahamas, based on court, regulator and liquidator records, and where creditor payouts stand as of October 2026. Criminal and bankruptcy proceedings in the United States are separate and not covered here.

Why FTX came to Nassau

The Bahamas had passed the DARE ActDARE Act The Digital Assets and Registered Exchanges Act 2024, the Bahamian law that requires crypto businesses operating in or from The Bahamas to register with the Securities Commission. Glossary 2020, one of the first dedicated crypto laws anywhere, and FTX Digital Markets registered under it. In September 2021 FTX moved its headquarters from Hong Kong. Staff worked from an office park near Albany in south-west New Providence; The Block described the offices as a compound “akin to a group of strip malls”. In January 2022 FTX announced a US$60 million campus for about 1,000 people on an office park on Nassau’s north side and broke ground in April 2022. According to Fortune, construction never started.

The company also bought homes. Reuters reported in November 2022 that FTX Property Holdings had bought 15 properties worth about US$100 million in 2021–22, including a US$30 million Albany penthouse described as a residence for key personnel and seven Albany condos worth about US$72 million, plus a beach-access home in Old Fort Bay recorded as a vacation home. The liquidators have since sold property; local press reported gross proceeds of US$38.2 million by January 2026.

The high point was the Crypto Bahamas conference, co-hosted by FTX and SALT at Baha Mar on 26–29 April 2022. It was invitation-only, drew about 2,000 people and featured Bill Clinton, Tony Blair and Tom Brady, with opening remarks from Prime Minister Philip Davis. It was never repeated (see crypto events).

November 2022: what the regulator did

As FTX’s global business unravelled, the Securities CommissionSCB The Securities Commission of The Bahamas, the regulator that registers and supervises crypto businesses under the DARE Act. Glossary acted quickly. On 10 November 2022 it froze the assets of FTX Digital Markets, suspended its registration and applied to the Supreme Court for a provisional liquidator; Brian Simms KC was appointed. On 12 November it directed that all digital assets under the company’s control be moved to wallets controlled by the Commission for safekeeping, relying on section 19(3) of the 2020 Act. At market prices then, those assets were worth more than US$3.5 billion.

Of 342 suspicious transaction reports filed by Bahamian crypto firms in 2022, 330 were linked to FTX.

The liquidation and the courts

On 10 November 2023 the Supreme Court of The Bahamas made a winding-up order (Claim No. 2022/COM/com/00060). The Joint Official Liquidators are Brian C. Simms KC and two partners of PwC Bahamas, Kevin G. Cambridge and Peter J. Greaves. On 29 January 2025 the court approved an agreement under which the SCB’s US$221.55 million claim for regulatory penalties, for breaches of the DARE Act and the Financial Transactions Reporting Act, is subordinated, so customers are paid before the regulator. The company still appears on the SCB register, marked suspended and in official liquidation.

Where distributions stand

Distributions to FTX Digital Markets creditors are paid through BitGo and, for retail claimants, also Payoneer. A round was scheduled for 31 March 2026 with a record date of 14 February 2026. In a notice dated 27 May 2026 the liquidators set a record date of 16 June 2026 for non-convenience class creditors, with the next distribution expected to begin on 31 July 2026. To take part, a claim had to be accepted and pass KYCKYC “Know your customer”: the ID checks (passport or driver’s licence, a selfie, proof of address) that regulated platforms must run before you can trade. Glossary checks by the record date, with a payment method and tax form in place.

We could not confirm from an official source whether the July 2026 payment was made on schedule. Earlier estimates from the liquidators pointed to about 119% of the accepted claim for the convenience class and 129–143% for larger claims, but treat those as estimates, not promises.

FTX in The Bahamas: timeline

How FTX reshaped Bahamian crypto law

The DARE Act 2024 was drafted after FTX, through a 2023 consultation, and targets its failures directly. Client assets must now be segregated on-chain and in the books and kept out of a failed firm’s estate. Firms may not lend, re-use or pledge client coins without consent and a clear warning. Exchanges must hold assets in The Bahamas worth at least 12 months of operating costs, and conflict-of-interest and connected-party rules are tighter. The SCB also ran an externally supported diagnostic review of all 13 registrants between 2023 and 2025. The full framework is explained on our crypto regulation page, and today’s registered firms are listed in the SCB register guide.

What FTX means for you today

The practical lesson is about custodyCustodial Someone else, usually an exchange, holds the keys for you. Easy, but you rely on that company staying solvent and honest. Glossary. Coins left on an exchange are only as safe as the company holding them. Ask whether a platform publishes proof of reservesProof of reserves A public check showing an exchange actually holds the customer coins it claims. The idea gained traction after FTX collapsed in Nassau in 2022. Glossary, which regulator supervises it, and whether client assets are segregated. For anything you plan to hold for years, consider self-custody.

Related reading

Crypto regulation DARE Act 2024, SCB powers, the Travel Rule and new 2027 fees in plain English. Read guide Registered companies The official DARE register, decoded firm by firm. Read guide Events & community From the 2022 Baha Mar conference to today’s local meetups. Read guide Nassau & Paradise Island Buying Bitcoin in Nassau or on Paradise Island: which banks wire to exchanges, where the regulat… Read guide