The Bahamas Regulator Has Froze FTX Assets as the Crypto Exchange Fights for Survival

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Last Updated on November 11, 2022 by Bitfinsider

As the world’s second-largest cryptocurrency exchange struggles for survival, the Bahamas securities regulator has frozen the assets of FTX’s Bahamas business.

Thursday, the Securities Commission of the Bahamas announced that it had froze the assets of FTX Digital Markets and linked parties and appointed a liquidator for the unit.

No assets of FDM, client assets, or trust assets held by FDM may be transferred, assigned, or otherwise dealt with without the written consent of the interim liquidator, the commission stated.

In its statement, the commission underlined recent reports that FTX customers’ assets were mismanaged or transferred to Alameda Research, the crypto hedge fund headed by Sam Bankman-Fried, FTX’s founder.

“Based on the evidence provided by the commission, any such actions would have been counter to regular governance, undertaken without customer approval, and potentially illegal,” the document stated.

According to various sources, Bankman-Fried struggled to obtain funds to cover a financial hole in the Bahamas-based exchange that could be as deep as $8bn (£6.8bn) as consumers fled.

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