### In the midst of a frenzy to ’make things right’, SBF changes course and seeks bankruptcy protection. Bankruptcy was pretty much a foregone conclusion, but SBF seemed to have been trying to prevent it or at least buy some time. Why did he fold all of a sudden?

The timing of the bankrupcy had a bit of an element of surprise though. Bankruptcy didn’t seem imminent, in the hours before. It was, perhaps, a few days away yet. SBF was still fighting - as if he lost his grip on reality and believed he could save his sunken ship; or, the more sinister scenario is that he was buying time for a cover up or something similar (pure speculation at this point). Here’s three reasons why the timing seemed strange: 

First, just hours before the bankruptcy press release, SBF claimed in a twitter series that he was still trying to make things right by sending a series of tweets to reassure eveyone that FTX US was fine and that FTX International still has more assets to cover the deposits. He kept alluding to the issue being a ‘liquidty issue’ but [we didn’t believe him](https://www.cryptoflash.report/articles/sbf-ftx-us-is-fine-here-we-goagain). 

Second, SBF actively trying to raise much needed cash through an equity investment or [debt](https://www.reuters.com/technology/exclusive-bankman-fried-seeks-94-bln-package-ftx-rescue-sources-2022-11-10/). 

Third, SBF was also purpotedly working with Justin Sun to find ways for folks to withdraw money out of FTX. Justin Sun allegedly had ‘billions’ to deploy to [help FTX.](https://www.bloomberg.com/news/articles/2022-11-11/tron-is-ready-to-provide-ftx-with-billions-inaid-sun-says). 

So going back to recent events, why did SBF suddenly shift to a bankruptcy strategy while he was busy creating more dubious schemes? We think its because a regulator finally stepped in to cut the legs off from his criminal enterprise - the money was frozen. Hours before the bankruptcy filing was announced the guardian reported that SBF empire’s cash stash was frozen by a Securities Commission of the [Bahamas](https://www.theguardian.com/technology/2022/nov/11/ftx-assets-frozen-bahamasregulator-crypto-exchange-bankman-fried?CMP=Share_iOSApp_Other). 

The Securities Commission of the Bahamas issued a [press release](https://www.scb.gov.bs/wp-content/uploads/2022/11/Securities-Commission-Statement-onFTX-101122-Final.pdf) that stated “The powers of the directors of FDM have been suspended and no assets of FDM, client assets or trust assets held by FDM, can be transferred, assigned or otherwise dealt with, without the written approval of the provisional liquidator.” 

While it appears that the actual freeze happened a few days earlier, we think that when the information finally became public, SBF had no more ability to bring others like Justin Sun on board to his schemes. SBF no longer had the financial muscle to keep trying to ostensibly save his empire, or who knows what else he was trying to do. 

We think that the key hero in this FTX fiasco is the Bahamas Securities Commission. The act of freezing the accounts finally put a stop to the madness. After all this, there can be no doubt that more regulation is needed in the crypto space.

In the midst of a frenzy to ’make things right’, SBF changes course and seeks bankruptcy protection. Bankruptcy was pretty much a foregone conclusion, but SBF seemed to have been trying to prevent it or at least buy some time. Why did he fold all of a sudden?

Sat Nov 12 2022

In the FTX Fiasco, Bahamas Securities Commission is the Hero

FTX Creditors File Class Action Against Bankruptcy Law Firm

Revolut to Distribute $1.2 Million in BONK

Starknet Foundation’s Plan to Distribute STRK Token

The Korea Times: South Korea to Remove ‘Unfit’ Crypto Exchanges

DecenTrader Founder Notes Bearish Signal

Revolut to Distribute $1.2 Million in BONK

Sat Nov 12 2022 In the FTX Fiasco, Bahamas Securities Commission is the Hero

FTX Creditors File Class Action Against Bankruptcy Law Firm

Revolut to Distribute $1.2 Million in BONK

Starknet Foundation’s Plan to Distribute STRK Token

The Korea Times: South Korea to Remove ‘Unfit’ Crypto Exchanges

DecenTrader Founder Notes Bearish Signal

Revolut to Distribute $1.2 Million in BONK

Sat Nov 12 2022

In the FTX Fiasco, Bahamas Securities Commission is the Hero