Bahamas Regulator freezes assets belonging to protected crypto exchange FTX

The crypto exchange’s problems continue to get worse even after the SBF’s recent apology.

Amid ongoing problems with crypto exchange FTX, the Securities Commission of the Bahamas (SCB) has frozen the company’s assets.

The Bahamian regulator has also asked the court to appoint a temporary liquidator for FTX.

• In a press release posted by Nassau Guardian via Twitter on Thursday (November 10, 2022), the Commission revealed it had frozen the assets of FTX Digital Markets (FDM) “and related parties”.
• Back in September 2021, FTX CEO Sam Bankman-Fried announced that the company’s headquarters would be in the Bahamas.
• An excerpt from the announcement reads:
  “The Commission is aware of public statements indicating that client assets have been mishandled, mismanaged, and/or transferred to Alameda Research. Based on the Commission’s information, any such action would be contrary to normal administration without the consent of the client and potentially illegal“.
• The Bahamian regulatory watchdog has also sought the appointment of a temporary liquidator for FTX from the country’s Supreme Court, with Brian Simms, an attorney, appointed by the court.
• After that, the exchange’s assets cannot be transferred or transferred without the written approval of the temporary liquidator.
  According to the press release, the latest series of unfortunate events involving the cryptocurrency exchange prompted the agency to take “an act of caution” by having the company deemed a “temporary liquidation to protect its assets.” assets and stabilize the company.”
• In addition to the asset freeze, the Commission has also suspended FTX’s registration process.
• The latest developments come as FTX is battling a liquidity crisis. As CryptoPotato recently reported, CEO Sam Bankman-Fried has issued an official apology, pledging “users do the right thing.”
• Bankman-Fried also revealed that he is in discussions with several industry players after major rival Binance pulled out of an acquisition deal.

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