In addition to numerous investigations by US authorities, regulators in the Bahamas had also announced the freezing of FTX’s assets. It is certainly all this that led to the resignation of the CEO of the exchange.
Bahamian Regulator Freezes FTX Assets
FTX is reeling from the unpleasant news. After being one of the most popular exchanges in recent years, the tide seems to be changing for Sam Bankman-Fried’s crypto company. The exchange platform is not just in trouble in the United States. According to a Press release released on Thursday, Bahamian regulators froze the assets of FTX Digital Markets and related parties.
According to the Securities Commission, this decision is not made at random. Its purpose would be to protect assets and stabilize the business. In its statement, the regulator says it is aware of some statements suggesting the exchange may have mismanaged customer assets. Said statements state that the investors’ holdings would have bailed out the coffers of Alameda Research.
Therefore, the commission considers these actions to be illegal since they are contrary to normal governance. So, in addition to freezing the company’s accounts, it is also suspending it. Additionally, it appoints Brian Sims, attorney and senior partner at Lennon Patox, as interim liquidator of the assets.
The blow must be hard to take because FTX did not comment. The crypto ecosystem is a godsend when it comes to making profits. But in the opposite direction, it can quickly become hell. Between the bear market, legal proceedings and negative comments from Internet users, one wonders if the story of Terra Luna is not repeating itself.
The FTX affair is taking on alarming proportions. Despite the loss of capital, the trading platform cryptocurrencies held on. But now it’s a whole different story. The exchange filed for bankruptcy and its CEO tendered his resignation.
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