The Securities Commission of The Bahamas (BSC) has frozen assets of the collapsed FTX Digital Markets (FDM). The regulator took to provisional liquidation in an effort to safeguard assets for the time being.
The BSC is aware of public statements highlighting that FTX mishandled clients’ assets, and mismanaged or transferred them to its trading firm Alameda Research. It has stripped powers from the FTX directors. The regulator said it determined the prudent course of action to put the crypto exchange into a provisional liquidation to preserve assets and stabilize the company.
The Bahamian Supreme Court, as per the statement, appointed a provisional liquidator. It emphasized that no assets of FDM, client assets, or trust assets held by the local subsidiary of FTX can be transferred, assigned, or otherwise dealt with, without the written approval of the provisional liquidator. It should be noted that FDM is the Bahamian subsidiary of the exchange with FTX US, a separate United States-based entity.
The BSC will collaborate with the appointed liquidator for the best possible outcome for the beleaguered FTX’s customers and other stakeholders. The regulator has appointed Brian Simms, who is a senior partner and head of litigation and insolvency at LennoxPaton, to oversee the inquiry.
FTX’s collapse has once again turned heads around the world prompting regulators to take swift action to protect the interest of investors and consumers.