Bahamas Securities Regulator Assumes Full Control of FTX Assets
The Securities Commission of The Bahamas has taken complete control of FTX assets, days after freezing it.
In a media release published on Thursday, the Securities Commission of the Bahamas (SCB) announced it had assumed full control of all digital assets in possession of FTX Digital Markets LTD, based in the Bahamas.
Bahamas Regulator Seizes Full Control Over Assets of FTX Digital Markets
Per the release, the commission issued a directive on October 12th for all assets owned by the bankrupt company to be transferred to a digital wallet that they control. The SCB said the reason for the urgent interim regulatory action was for safekeeping, which it said is necessary to secure the interest of both the creditors and clients of FTX Digital Markets.
Two days before, the Bahamas regulator announced it would freeze all assets of FTX Digital Markets in light of the company’s liquidity situation. The regulator also dissolved the powers of the company directors and appointed a provisional liquidator, who only can approve the transfer of FTX assets.
On October 15th, the liquidator of FTX Digital Markets filed for Chapter 15 bankruptcy protection, which deals with cases involving debtors across multiple jurisdictions. This is separate from the previous Chapter 11 bankruptcy filing by FTX, which named about 130 companies, excluding FTX Digital Markets.
Commenting on that, the Bahamas Securities regulator said in the media release: “It is not the understanding of the Commission that FDM is a party to the US Chapter 11 Bankruptcy proceedings.” However, SCB added that it would engage with other regulators and authorities to obtain the best possible outcome of the bankruptcy proceedings for clients, creditors, and stakeholders of FTX Digital Markets.
FTX Was Down Bad
In a separate development, the provisional liquidator of FTX Digital Markets reported their first findings on Wednesday, which unveiled serious conduct of fraud and mismanagement in the company.
“As set forth below, the Joint Provisional Liquidators’ findings to date indicate that serious fraud and mismanagement may have been committed with respect to FTX Digital and the FTX Affiliates,” the liquidator said in a recent court filing.
~By Ibiam Wayas ~
