Bahamian Securities Regulator Freezes FTX Assets

The Bahamas Securities Commission (BSC) froze the assets of FTX Digital Markets (FDM) and “related parties” on November 10, it also suspended FTX’s registration in the country and the Bahamian Supreme Court ruled appointed a provisional liquidator, the BSC said in a statement shared by local media.

The BSC added that it was aware of “public statements suggesting that client assets were mishandled, mismanaged and/or transferred to Alameda Research.”

“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,” he said. The directors of FTX also had their powers stripped.

FTX is registered in the Bahamas, with FTX US being a separate US-based entity.

The BSC said it will work with the appointed liquidator to “achieve the best possible outcome for FTX’s customers and other stakeholders.”

This is a developing story and will be updated as more information becomes available.

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