Certainly, FTX is living one of the worst weeks in its entire history. His financial problems keep piling up. Some crypto market experts are even talking about bankruptcy already. After the significant decline of the platform and the heritage of Sam Bankman-Fried, FTX finds itself faced with a new problem. Indeed, his assets have been frozen by the Bahamas Security Commission.
The Bahamas Security Commission appoints a provisional liquidator
Bloomberg relayed the information early in the day on November 11. The Bahamas Securities Commission froze FTX’s assets and suspended its registration in the country. However, it should be noted that this measure only concerns FTX Digital Markets and its “related parties”. More explicitly, it is the local trading subsidiary of the crypto company.
In his press release, the Bahamas Security Commission explains its motives. According to this authority, “this would be a prudent course of action to preserve assets and stabilize the FTX US company”. She adds, “The Commission is aware of public allegations suggesting that client assets are misused, mismanaged and/or transferred to Alameda Research.” For the commission, such actions are quite simply illegal.
In this same approach, the BSC has appointed a lawyer who will act as provisional liquidator. She will work with this liquidator to find the best possible solutions, both for FTX’s clients and for its investors. “No FDM Assets, Client Assets or Trust Assets held by FDM may be transferred, assigned or otherwise dealt with without the written approval of the Provisional Liquidator. “, she says in the statement.
Total panic within FTX!
Even though Sam Bankman-Fried is trying to put on a good face, there is panic in the crypto society. In particular, it is known that FTX US personnel are currently looking to sell assets.
FTX’s liquidity crisis has reportedly even caught the attention of US authorities. Regulators are now pushing to better secure the cryptocurrency market, wanting at all costs to avoid another scandal.
Despite all the setbacks, Sam Bankman-Fried and his team are doing everything they can to call the shots. Early on November 11, it was announced on FTX’s Twitter account that ETH withdrawals would resume shortly. For his part, the CEO of the crypto platform intends to deploy all his resources to allow FTX to recover. And you, do you still believe it?
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