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Bahamas Regulator Freezes Assets Belonging to Beleaguered FTX Crypto Exchange

Summary:
Amid the problems plaguing cryptocurrency exchange FTX, the Securities Commission of the Bahamas (SCB) has frozen the firm’s assets. The Bahamian regulator also got the court to appoint a provisional liquidator for FTX. In a press release posted by Nassau Guardian via Twitter on Thursday (November 10, 2022), the Commission revealed it had frozen assets of FTX Digital Markets (FDM) “and related parties.” Back in September 2021, FTX CEO Sam Bankman-Fried announced that the company’s headquarters will be in the Bahamas. An excerpt from the announcement reads: “The Commission is aware of public statements suggesting that clients’ assets were mishandled, mismanaged and/or transferred to Alameda Research. Based on the Commission’s information, any such actions would have been

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Amid the problems plaguing cryptocurrency exchange FTX, the Securities Commission of the Bahamas (SCB) has frozen the firm’s assets.

The Bahamian regulator also got the court to appoint a provisional liquidator for FTX.

  • In a press release posted by Nassau Guardian via Twitter on Thursday (November 10, 2022), the Commission revealed it had frozen assets of FTX Digital Markets (FDM) “and related parties.”
  • Back in September 2021, FTX CEO Sam Bankman-Fried announced that the company’s headquarters will be in the Bahamas.
  • An excerpt from the announcement reads:

“The Commission is aware of public statements suggesting that clients’ assets were mishandled, mismanaged and/or transferred to Alameda Research. Based on the Commission’s information, any such actions would have been contrary to normal governance, without client consent and potentially unlawful.”

  • The Bahamian regulatory watchdog also sought the appointment of a provisional liquidator for FTX from the country’s Supreme Court, with Brian Simms, an attorney, appointed by the court.
  • Subsequently, the exchange’s assets cannot be transferred or assigned without written approval from the provisional liquidator.
  • According to the press release, the latest string of unfortunate events regarding the crypto exchange caused the agency to take “a prudent cause of action” by putting the beleaguered firm “into provisional liquidation to preserve assets and stabilize the company.”
  • In addition to freezing assets, the Commission also suspended FTX’s registration process.
  • The latest development comes as FTX is battling a liquidity crisis. As recently reported by CryptoPotato, CEO Sam Bankman-Fried tendered an official apology, pledging to “do right by users.”
  • Bankman-Fried also revealed that he is discussing with some players in the industry after major rival Binance backed out of an acquisition deal.

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