Bahaman Regulator Freezes FTX Assets

A local outlet posted the first page of a media release of the Securities Commission of the Bahamas. According to the release, the agency is both freezing the assets of FTX, and requesting the appointment of a provisional liquidator.

Bahaman Regulator Comes After FTX

According to the statement, the agency believes the freeze is “the prudent course of action” and is intended to stabilize the company and secure assets. The freeze came after two days of chaos for FTX which first appeared to be facing a severe liquidity crunch but soon found itself imploding.

The Bahamas Securities Commission is also requesting that the Supreme Court appoint a provisional liquidator for FTX to “obtain the best possible outcome for the customers and other stakeholders of FTX.” Among its reasons, the Commission cited the reports of potentially unlawful handling of users’ assets by the company.

Regulatory Rumble Amidst the FTX Implosion

Ever since the implosion was triggered by Binance’s liquidation of its FTT, regulators have been reportedly keeping a close eye on the situation. In the US, the Department of Justice allegedly joined the SEC’s probe of FTX after Binance decided against trying to rescue the company.

On Thursday, a US Representative raised questions over the SEC”s handling of FTX and said that he has reports of Gensler helping SBF find a way to achieve monopoly. The White House also commented on the implosion of Bankman-Fried’s company by saying that “prudent regulation of cryptocurrencies is indeed needed”.

Apart from US and Bahamas regulators, Japanese agencies have also been stepping in. The Japanese Financial Services agency ordered FTX Japan to go into “close-only” mode this Thursday.

This article originally appeared on The Tokenist

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.