Breaking: Bahamian Securities Regulator Freezes FTX Assets
The Bahamas Securities Commission has said that FTX's assets cannot be moved without the approval of a liquidator appointed by the Supreme Court.
Recent news
The Bahamas Securities Commission (BSC) - the country's securities regulator - froze the assets of FTX Digital Markets (FDM) and "related parties" on November 10 and suspended FTX's registration in the country.
In a statement, the BSC said it was aware of "public statements suggesting that client assets were mishandled, mismanaged and/or transferred to Alameda Research".
Alameda is a trading company founded by FTX CEO Sam Bankman-Fried, a leaked balance sheet of the company showed it held large amounts of the FTX exchanges native token, FTX Token (FTT), and rumors that it was funding trades using FTX user funds led to a "bank-run" on FTX, causing a liquidity crunch for the exchange.
The BSC has now removed the powers of FTX's directors and said it has determined that the "prudent course of action" is to put FTX into provisional liquidation "to preserve assets and stabilize the business".< /p>
According to the statement, the Supreme Court of the Bahamas has appointed an interim liquidator and declared that "no FDM assets, customer assets or trust assets held by FDM may be transferred, assigned or otherwise dealt with without the written approval of the provisional liquidator."
FTX is headquartered in the Bahamas and FTX Digital Markets is the Bahamian branch of the exchange with FTX US a separate US-based entity.
The BSC said it will work with the appointed liquidator to “achieve the best possible outcome for FTX’s customers and other stakeholders.”
Cointelegraph contacted FTX and the BSC for comment but did not receive an immediate response.
Related:
The Bahamas Securities Commission has said that FTX's assets cannot be moved without the approval of a liquidator appointed by the Supreme Court.
Recent news
The Bahamas Securities Commission (BSC) - the country's securities regulator - froze the assets of FTX Digital Markets (FDM) and "related parties" on November 10 and suspended FTX's registration in the country.
In a statement, the BSC said it was aware of "public statements suggesting that client assets were mishandled, mismanaged and/or transferred to Alameda Research".
Alameda is a trading company founded by FTX CEO Sam Bankman-Fried, a leaked balance sheet of the company showed it held large amounts of the FTX exchanges native token, FTX Token (FTT), and rumors that it was funding trades using FTX user funds led to a "bank-run" on FTX, causing a liquidity crunch for the exchange.
The BSC has now removed the powers of FTX's directors and said it has determined that the "prudent course of action" is to put FTX into provisional liquidation "to preserve assets and stabilize the business".< /p>
According to the statement, the Supreme Court of the Bahamas has appointed an interim liquidator and declared that "no FDM assets, customer assets or trust assets held by FDM may be transferred, assigned or otherwise dealt with without the written approval of the provisional liquidator."
FTX is headquartered in the Bahamas and FTX Digital Markets is the Bahamian branch of the exchange with FTX US a separate US-based entity.
The BSC said it will work with the appointed liquidator to “achieve the best possible outcome for FTX’s customers and other stakeholders.”
Cointelegraph contacted FTX and the BSC for comment but did not receive an immediate response.
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