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FTX assets frozen by Bahamas securities regulator

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The Securities Commission of the Bahamas (BSC) has frozen assets of FTX Digital Markets Ltd. (FDM) and related parties, and has suspended its registration, according to its official announcement on Thursday.

See related article: Industry reacts: FTX bankruptcy fears rise after Binance scraps rescue

Fast facts

  • “The powers of the directors of FDM have been suspended and no assets of FDM, client assets or trust assets held by FDM, can be transferred, assigned or otherwise dealt with, without the written approval of the provisional liquidator,” the BSC announcement said.
  • The commission added that it is aware of public statements indicating that the client assets under FTX were “mishandled, mismanaged and/or transferred to Alameda Research,” which could potentially be unlawful.
  • It has appointed Brian Simms K.C., counsel and attorney-at-law at Bahamas law firm Lennox Paton as the provisional liquidator, who is expected to make efforts to protect company assets and property for the sake of creditors.
  • According to reports, Bankman-Fried needs US$8 billion to save FTX.
  • While FTX.com states that it has halted customer withdrawals and onboarding, it announced on Twitter early morning on Friday that it is supporting the withdrawals of Bahamian funds in compliance with local regulators. It adds that it is actively working to enable withdrawals for the rest of its user base.

See related article: FTX Japan ordered to suspend operations by the country’s regulators 





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