The assets of FTX Digital Markets and associated parties have been placed on ice by the Bahamas Securities Commission. The financial authority advised placing the cryptocurrency company “into provisional liquidation to safeguard assets and stabilize the company” as the prudent course of action.
Bahamas Securities Regulator Takes Action Against FTX
The assets of FTX Digital Markets and linked parties have been frozen, the Securities Commission of the Bahamas announced on Thursday. The Bahamian division of Sam Bankman-FTX Fried’s Trading Ltd., which owns and runs the cryptocurrency trading website FTX.com, is FTX Digital Markets.
As well as “suspending” the company’s registration, the regulator stated that it has “applied to the Supreme Court of the Bahamas for the appointment of a provisional liquidator of FTX Digital Markets Ltd. (FDM).” The temporary liquidator has been named Brian Simms, a lawyer at Lennox Paton.
The Bahamian Securities Commission further explained:
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 securities watchdog also stated that it is “aware of public statements indicating that the client’s assets were mishandled, mismanaged, and/or transferred to Alameda Research,” adding that “any such actions would have been contrary to normal governance, without client consent, and potentially unlawful.”
The Bahamian securities regulator emphasised that it “has proactively dealt with the situation and continues to do so” since the development of events involving FDM, elaborating:
The Commission determined that the prudent course of action was to put FDM into provisional liquidation to preserve assets and stabilize the company.
The Department of Justice (DOJ), the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC) are looking into FTX in the United States.
Alameda Research is ceasing trade, according to Bankman-announcement Fried’s on Thursday. He allegedly warned FTX.com investors that without a capital infusion, their business could declare bankruptcy. He reportedly wants to raise as much as $9.4 billion.
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