11-12-2022 icon

Bahamas Securities Commission suspends troubled FTX’s Property

By Lucy Adegbe

The Securities Commission of the Bahamas (SCB), in charge of local regulation of securities, suspended the digital properties of FTX Digital Market (FDM) alongside affiliated players on Friday, also deferring its license of operation in the region.

According to an announcement, the regulatory body cited that it heard speculations of how the troubled protocol misappropriated and sent out funds to its sister company Alameda Research.

Alameda Research, owned by Sam Bankman-Fried, had shown a financial statement reflecting that it was in the custody of a significant portion of FTT coin. There were allegations that Alameda utilized these FTX customers’ reserves for its transaction, resulting in a bankruptcy challenge for the trading protocol FTX.

Consequently, the SCB has ripped the troubled exchange off its operations authorities with notes that the most rational step to take next is to place FTX on temporary sell-out for the protection of its properties until the firm regains stability.

Further statements from the regulator inferred that FTX is no longer granted authority to transfer customer’s properties,  FDM properties or trust property unless approved by the high court-appointed insolvency practitioner.

The SCB, with its court-appointed insolvency practitioner, is aiming for a more favorable result for users and investors of FTX.

Relatively, the troubles of FTX have also awakened investigations from United States regulators. House of Rep Economic Assistance board chief Maxine Waters is suggesting a more stern user security as well as better national supervision of digital currency protocols.