Bahamas Securities Regulator Takes Action by Freezing FTX Digital Markets and Related Parties

FTX Digital Markets (FDM) and “related parties” were froze by the Bahamas Securities Commission (BSC) on Nov. 10 and their registration was suspended.

The regulator aware of mishandled client assets by SBF

The BSC noted that it was aware of public statements suggesting client assets had been mishandled, mismanaged, or transferred to Alameda Research.

“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 Nassau Guardian distributed a statement from the commission on Twitter.

Read More: Crypto Leaders Blame Lack Of Clarity Of US Regulations for FTX Incident 

A leaked balance sheet of Alameda, the trading firm founded by the CEO of FTX, revealed that the company held large amounts of the exchange’s native token, FTX Token. Rumors that Almeda used FTX user funds to fund trades caused FTX to go into a liquidity crisis after the “bank-run.”.

Besides suspending the registration, the commission also applied to the country’s Supreme Court for a provisional liquidator’s appointment. The power of FDM directors has been suspended as well.

Facilitating Withdrawals of Bahamian Funds

Former head of institutional sales at FTX, Zane Tackett, tweeted today that FTX now facilitates withdrawals from Bahamian Funds.

“Per our Bahamian HQ’s regulation and regulators, we have begun to facilitate withdrawals of Bahamian funds. As such, you may have seen some withdrawals processed by FTX recently as we complied with the regulators,” he said.

He added, “The amounts withdrawn comprise a small fraction of the assets we currently hold on hand and we are actively working on additional routes to enable withdrawals for the rest of our userbase.  We are also actively investigating what we can and should do across the world.”

Read More: Companies with The Biggest Exposure to FTX

Asked if he got his money out, Tacket said “haven’t withdrawn a cent, nor will i. i’m also not bahamian, nor do i have a bahamian entity, so don’t think i could anyway”

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Jamilatul Mahmudah

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