Prasannkumar 
FTX's digital assets were seized by The Bahamas for safekeeping.
FTX’s digital assets were seized by The Bahamas for safekeeping.
The Securities Commission of The Bahamas has claimed that it has taken over FTX Digital Markets assets to protect investors.
Financial authorities in the Caribbean have taken control of digital assets belonging to the Bahamas unit of the troubled cryptocurrency exchange FTX.
The Securities Commission of The Bahamas announced Thursday that it had transferred the digital assets of FTX Digital Markets to a digital wallet under its control for “safekeeping”.
According to the regulator, the agency took the necessary action Saturday to protect investors and clients.
The commission stated in a statement that “Urgent interim regulatory actions were necessary to protect clients and creditors of FDM.”
“Under the Digital Assets and Registered Exchanges Act 2020 (“DARE Act”) the Commission is authorized to seek a judicial or administrative order to protect clients and customers of a registrant under the DARE Act.”
According to the regulator, FDM was not a party in bankruptcy proceedings in the United States involving parent FTX.
It stated that the Commission would engage in discussions with regulators and authorities from multiple jurisdictions to address issues affecting creditors, clients, and stakeholders of FDM worldwide over the next few days and weeks.
This announcement follows a US court filing that Tuesday revealed that FDM sought protection under Chapter 15 US Bankruptcy Code.
Non-US companies can use this provision to shield themselves against creditors who seek to file lawsuits in the US or to tie up assets.
FTX filed for bankruptcy after investors rushed $6 billion to the platform, and a rescue plan by Binance was canceled.
The collapse of FTX (the third-largest cryptocurrency exchange) has caused shockwaves in the crypto sector. There have been allegations of fraud and comparisons with Lehman Brothers.
John Ray, the new CEO of FTX, stated in a court filing that he has never witnessed such a “complete breakdown of corporate controls” and an “absence of reliable financial information such as this”.
Sam Bankman-Fried was the former CEO and founder of Vox. He said that he regrets his decision to file for bankruptcy protection. Then, he stated that regulators “don’t protect customers at any cost”. After appearing to retract some of his remarks, he stated that a few of his comments were true.
Bankman-Fried and celebrities who promoted FTX face an $11bn class-action lawsuit from investors. The US Department of Justice and Securities and Exchange Commission are also investigating whether Bankman Fried or his company have violated securities law.
Bankman-Fried and celebrities who promoted FTX face an $11bn class-action lawsuit from investors. The US Department of Justice and Securities and Exchange Commission are also investigating whether Bankman Fried or his company have violated securities law.
Prasannkumar is a passionate digital marketer and devoted team leader. He loves trying out and sharing the latest knowledge about industry trends, market growth, and keyword analysis with new google and other search engines algorithm. He effectively knows how content feeds into different subsets of the marketing plan and grasps how to develop and share the content assets on the right channels.
