The Securities Fee of The Bahamas (SCB) — the nation’s securities regulator — froze the property of FTX Digital Markets (FDM) and “associated events” on Nov. 10 and suspended FTX’s registration within the nation.
In an announcement, the SCB mentioned it was aware of “public statements suggesting that shoppers’ property had been mishandled, mismanaged and/or transferred to Alameda Analysis.”
Alameda is a buying and selling agency based by FTX CEO Sam Bankman-Fried. And a leaked stability sheet from the agency confirmed it held giant quantities of the FTX exchanges’ native token, FTX Token (FTT), and rumors it was funding trades utilizing FTX person funds led to a “bank-run” on FTX, inflicting a liquidity disaster for the change.
The SCB has now stripped powers from the administrators of FTX and mentioned it decided the “prudent plan of action” was to place FTX right into a provisional liquidation “to protect property and stabilize the corporate.”
In keeping with the assertion, the Bahamian Supreme Court docket appointed a provisional liquidator and mentioned, “no property of FDM, consumer property, or belief property held by FDM will be transferred, assigned, or in any other case handled, with out the written approval of the provisional liquidator.”
FTX is headquartered within the Bahamas and FTX Digital Markets is the Bahamian subsidiary of the change with FTX US a separate United States-based entity.
The SCB mentioned it would work with the appointed liquidator to “get hold of the absolute best final result for the purchasers and different stakeholders of FTX.”
Cointelegraph contacted FTX and the SCB for remark however didn’t get a direct response.
Associated: FTX turmoil will increase scrutiny of trade, one thing institutional traders have been ready for
The disaster with FTX has additionally drawn scrutiny from regulators within the U.S. with the Home of Representatives Monetary Companies Committee chair, Maxine Waters, pushing for higher shopper safety and extra federal oversight of cryptocurrency buying and selling platforms.
The White Home additionally mentioned U.S. President Joe Biden was conscious of the crypto market scenario, with White Home Press Secretary Karine Jean-Pierre alluding to FTX’s liquidity disaster that highlighted “why prudent regulation of cryptocurrencies is certainly wanted.”
Replace Nov. 11, 4:00 AM UTC: The article incorrectly referenced the Securities Fee of The Bahamas (SCB) and has been up to date to mirror the proper time period.
