Key Takeaways
- Bahamian regulators have moved to freeze FTX’s belongings.
- The motion was reported after information that sure Bahamian clients had been allowed to withdraw funds.
- The corporate’s sudden fall from grace is being seen as one of many nice catastrophes within the historical past of the business.
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The Securities Fee of the Bahamas is taking motion to freeze FTX’s belongings.
Regulators Step In
Bahamanian regulators are taking swift motion towards FTX.
The Nassau Guardian reported at this time that the Securities Fee of the Bahamas, the place flailing crypto trade FTX is headquartered, has taken motion to freeze its belongings.
At the moment, the Securities Fee of The Bahamas took motion to freeze the belongings of FTX Digital Markets. The Fee additionally utilized to the Supreme Courtroom for the appointment of a provisional liquidator of FTX. pic.twitter.com/1sy7yQWnAN
— Nassau Guardian (@GuardianNassau) November 10, 2022
The information comes solely hours after FTX opened restricted withdrawals for sure Bahamian clients, which raised suspicions on social media circles about which clients got desire. FTX additionally introduced at this time that it had reached an settlement with Tron to allow withdrawals by way of an elaborate arbitrage scheme, additionally elevating issues.
U.S., Japanese Customers Will Lose Entry
In associated developments at this time, FTX US’s web site warned that “buying and selling could also be halted on FTX US in a number of days.” It instructed customers to “shut down any positions” as desired however indicated that “withdrawals are and can stay open.”
The corporate has additionally introduced that its Japan counterpart will limit trading by getting into close-only mode. Which means purchasers will solely be capable to shut opened positions and will be unable to open new positions. Japanese regulators have ordered the trade to enter this state.
FTX.com, the principle FTX trade, suspended withdrawals throughout a financial institution run on Tuesday, November 8. At the moment, it resumed withdrawals for Bahamian funds in accordance with native rules.
As of 10:30 PM UTC on November 8, FTX’s web site stated that withdrawals and account signups are disabled. Sure asset deposits are disabled as properly.
This morning, FTX CEO Sam Bankman-Fried stated at this time that his principal buying and selling agency, Alameda Analysis, will wind down buying and selling. “A technique or one other, quickly [Alameda] received’t be buying and selling on FTX anymore,” he stated.
Disclosure: On the time of writing, the writer of this piece owned BTC, ETH, and different digital belongings.
