Bahamas Regulator Freezes FTX Assets

The Securities Commission of The Bahamas blocked the assets of FTX Digital Markets (FDM) and affiliated entities, and also suspended the company’s license in the country.

JUST IN: The Securities Commission of The Bahamas has frozen the assets of FTX Digital Markets and related parties. pic.twitter.com/Kvsslqy8v0

— Eyewitness News Bahamas (@ewnewsbahamas) November 10, 2022

The court will consider the provisional liquidation procedure for the organization, which is necessary “to preserve assets and stabilise the company”. A trustee will handle this, the leadership of FTX is stripped of powers.

The regulator is aware of “statements regarding […] the management of Alameda Research client assets”, according to the statement.

The Commission and the appointed liquidator will strive to achieve the best possible outcome for clients and stakeholders.

FTX Digital Markets is a subsidiary of the exchange, whose headquarters are located in The Bahamas. FTX US is a separate legal entity.

Sam Bankman-Fried assured that the value of the exchange’s assets exceeds client deposits.

Earlier Bloomberg and WSJ reported an $8 billion hole in the platform’s balance sheet.

On November 10, Binance walked away from the deal to acquire FTX. The company said it could not resolve the issues facing the exchange.

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