Regulation

Regulator denies asking FTX to prioritize withdrawals for Bahamian clients

The Securities Fee of The Bahamas (SCB) has denied instructing or authorizing crypto alternate FTX to prioritize withdrawals of Bahamian shoppers. 

In an announcement on Nov. 12, the securities fee vehemently denied the contents of a Nov. 11 statement from FTX on Twitter that recommended it had been instructed by “Bahamian HQ’s regulation and regulators” to facilitate the withdrawal of Bahamian funds.

“The Fee needs to advise that it has not directed, licensed or recommended to FTX Digital Markets, Ltd. the prioritization of withdrawals for Bahamian shoppers,” read the assertion, which was shared on the SCB’s Twitter web page. 

Since FTX paused withdrawals on Nov. 9, the crypto alternate’s clients have been searching for means to withdraw their locked funds, with a lot of the exercise going by the Bahamas.

Methods have ranged from shopping for non-fungible tokens (NFTs) on Bahamas-based accounts to providing FTX workers bounties to alter their nation of residence to The Bahamas.

Associated: Sam Bankman-Fried is ‘below supervision’ in Bahamas, trying to flee to Dubai

Nevertheless, the SCB has warned that any withdrawal of funds could possibly be clawed again as a part of the agency’s potential liquidation proceedings.

“The Fee additional notes that such transactions could also be characterised as voidable preferences below the insolvency regime and consequently lead to clawing again funds from Bahamian clients,” it famous, including: 

“In any occasion, the Fee doesn’t condone the preferential therapy of any investor or consumer of FTX Digital Markets Ltd. or in any other case.”

The newest assertion from the SCB comes solely days after the securities regulator froze FTX’s property on Nov. 10 and suspended FTX’s registration within the nation. 

The SCB has additionally stripped the powers from the administrators of the FTX and mentioned it decided the “prudent plan of action” was to place FTX right into a provisional liquidation “to protect property and stabilize the corporate.”

Based on the assertion, the Bahamian Supreme Courtroom appointed a provisional liquidator and mentioned, “no property of FDM, consumer property, or belief property held by FDM could be transferred, assigned, or in any other case handled, with out the written approval of the provisional liquidator.”

Cointelegraph has reached out to FTX for remark however has not acquired a direct response. 

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