It was only a matter of time before regulators reacted to the FTX affair. It is now done: the Securities Commission of the Bahamas, where the company’s head office is located, has decided to freeze the assets of FTX Digital Markets, a local subsidiary. What will happen to users?
FTX Digital Markets assets frozen by Bahamian regulator
A decision “cautious “. This is how the Bahamian Securities Commission’s decision is described in a statement. The news was announced last night, and it concerns the entire local subsidiary FTX Digital Markets Ltd (FDM). The regulator specifies the points that have been raised during this eventful week, on which it intends to address:
” The Commission is aware of public statements that suggest that client assets have been mishandled, mismanaged, and/or transferred to Alameda Research. Based on the information available to the Commission, such actions would have been contrary to normal governance, without customer consent and potentially illegal. »
We learned yesterday that Sam Bankman-Fried, the CEO of FTX, would have discreetly transferred client funds during the fall of Voyager Digital, to save investment firm Alameda Research.
👉 On the same topic – Affected by FTX, BlockFi limits customer funds withdrawal functionality
The French unicorn of crypto wallets 🔒
A complete crypto experience, from buying to securing
FTX Digital Markets in Provisional Liquidation
The Securities Commission therefore decided to place FDM in provisional liquidationin order to “preserve assets and stabilize the business“. A lawyer has been appointed to take on the case while the regulator investigates.
Concretely, this means that user funds are effectively blocked. Movements of assets will only be authorized by the liquidator:
“No assets ofFTX Digital Marketsits clients, or trusts held byFDMcannot be transferred, reassigned or managed in any way, without the written approval of the provisional liquidator.»
Now begins the longest – and certainly the most painful – part for users. The company is going to be blocked until the legal proceedings catch up with the case. It’s about of a first legal consequence of the fall of the FTX empire. And this was so quick and unexpected that it will probably take a few weeks before the extent of the crisis is really known.
👉 Follow our live to know everything about the FTX affair and its ramifications
Join Experts and a Premium Community
PRO
Invest in your crypto knowledge for the next bullrun
Source: Nassau Guardian via Twitter
Newsletter 🍞
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
2194 items
