According to the Securities Commission of The Bahamas, a Supreme Court-appointed liquidator must approve the transfer of FTX’s assets.
FTX Digital Markets (FDM) and “related parties” have been frozen by the Securities Commission of The Bahamas (SCB) since November 10 and suspended FTX’s enrollment in the country.
In this whole matter, one verdict came in trending. The big investors said that the “client’s assets abused by the FTX exchange, mishandled or used in Alameda Research.”
Alameda is a well-known trading firm funded by Sam Bankman-Fried, FTX CEO. He even leaked the balance sheet and displayed considerable healded FTX native tokens. There is also a rumour that it was funding training by the FTX users funds that led to a “bank-run” on FTX, causing the exchange to lose liquidity.
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According to the SCB (Sam Bankman-Fried), FTX’s directors have been stripped of their powers and are being placed in provisional liquidation in order to preserve its assets and stabilize the company.”
A provisional liquidator has been appointed by the Bahamian Supreme Court, which said, “no assets of FDM, client assets, or trust acquisitions held by FDM can be transferred, assigned, or otherwise dealt with, without the written permission of the provisional liquidator.”
As the Bahamas-based exchange branch, FTX Digital Markets operates alongside FTX US, the US-based subsidiary.
For the benefit of FTX customers and other stakeholders, the SCB will work with the liquidator.
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A greater level of oversight of cryptocurrency trading platforms has been called for by Maxine Waters, the chair of the House of Representatives Financial Services Committee.
FTX’s liquidity crisis, which highlighted the importance of careful regulation of cryptocurrencies, was also mentioned as an example of why U.S. President Joe Biden was aware of the crypto market situation.
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