The Bahamas Securities Commission has frozen the assets of FTX Digital Markets and related parties. The financial regulator said the prudent course of action is to put the crypto firm “into provisional liquidation to preserve assets and stabilize the company.”
Bahamas Securities Regulator Takes Action Against FTX
The Securities Commission of the Bahamas announced Thursday that it has taken action 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 trading platform FTX.com.
The regulator added that it has also “suspended” the firm’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 attorney with Lennox Paton, has been appointed as the provisional liquidator.
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.
Furthermore, the securities watchdog revealed that it is “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 emphasized that since the unfolding of events involving FDM, it “has proactively dealt with the situation and continues to do so,” elaborating:
The Commission determined that the prudent course of action was to put FDM into provisional liquidation to preserve assets 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 said Thursday that Alameda Research is winding down trading. He reportedly told FTX.com investors that his company needs a cash injection or it may need to file for bankruptcy. According to reports, he is seeking to raise up to $9.4 billion.
What do you think about the Bahamas Securities Commission freezing FTX’s assets? Let us know in the comments section below.
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
More Popular News
In Case You Missed It
Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days
Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized … read more.