Bahamas Regulator Freezes FTX Assets — Supreme Court Appoints Provisional Liquidator – Regulation Bitcoin News

The Bahamas Securities Commission has frozen the belongings of FTX Digital Markets and associated events. The monetary regulator mentioned the prudent plan of action is to place the crypto agency “into provisional liquidation to preserve assets and stabilize the company.”

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Bahamas Securities Regulator Takes Action Against FTX

The Securities Commission of the Bahamas introduced Thursday that it has taken motion to “freeze assets of FTX Digital Markets and related parties.” FTX Digital Markets is the Bahamian subsidiary of Sam Bankman-Fried’s FTX Trading Ltd., which owns and operates crypto buying and selling platform

The regulator added that it has additionally “suspended” the agency’s registration and “applied to the Supreme Court of the Bahamas for the appointment of a provisional liquidator of FTX Digital Markets Ltd. (FDM).” Brian Simms, an lawyer with Lennox Paton, has been appointed because the provisional liquidator.

The Bahamian Securities Commission additional defined:

The powers of the administrators of FDM have been suspended and no belongings of FDM, shopper belongings or belief belongings held by FDM, will be transferred, assigned, or in any other case handled, with out the written approval of the provisional liquidator.

Furthermore, the securities watchdog revealed that it’s “aware of public statements suggesting that the clients’ assets were mishandled, mismanaged and/or transferred to Alameda Research,” noting that “any such actions would have been contrary to normal governance, without client consent, and potentially unlawful.”

The Bahamian securities regulator emphasised that for the reason that unfolding of occasions involving FDM, it “has proactively dealt with the situation and continues to do so,” elaborating:

The Commission decided that the prudent plan of action was to place FDM into provisional liquidation to protect belongings and stabilize the company.

In the U.S., the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Department of Justice (DOJ) are reportedly investigating FTX.

Bankman-Fried mentioned Thursday that Alameda Research is winding down buying and selling. He reportedly informed traders that his company wants a money injection or it might must file for chapter. According to stories, he’s searching for to boost as much as $9.4 billion.

What do you concentrate on the Bahamas Securities Commission freezing FTX’s belongings? Let us know within the feedback part under.

Kevin Helms

A scholar of Austrian Economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His pursuits lie in Bitcoin safety, open-source techniques, community results and the intersection between economics and cryptography.

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