In a press launch on Nov. 12, the Securities Fee of The Bahamas (SCB) contradicted the assertion printed by FTX about resuming withdrawals in The Bahamas.
Securities Fee Addresses FTX Assertion on Bahamian Withdrawals pic.twitter.com/OZKWwicSuN
— Securities Fee of The Bahamas (@SCBgov_bs) November 12, 2022
On Nov. 11, the previous head of institutional gross sales at FTX, Zane Tackett, introduced on Twitter that the alternate would enable withdrawals for Bahamanian shoppers. Within the assertion, Tackett mentioned that the withdrawals had been enabled in compliance with regulators.
1) Per our Bahamian HQ’s regulation and regulators, we’ve got begun to facilitate withdrawals of Bahamian funds. As such, you’ll have seen some withdrawals processed by FTX lately as we complied with the regulators.
— Zane Tackett (@tackettzane) November 10, 2022
This led to numerous FTX customers making an attempt to funnel funds by way of the assistance of Bahamians. Some even provided bribes to FTX workers to vary their nation to The Bahamas and assist withdraw funds.
Nevertheless, the SCB mentioned that the regulator neither “directed, licensed, or advised” FTX to prioritize native withdrawals.
In truth, the SCB press launch said:
“The Committee additional notes that such transactions could also be characterised as voidable preferences beneath the insolvency regime and consequently end in clawing again funds from Bahamian prospects.”
In different phrases, the regulator made it clear that the withdrawals processed by FTX for Bahamian shoppers could also be thought-about void and, due to this fact, reversed. The regulator firmly added that it doesn’t “condone” the preferential remedy of any FTX prospects.