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The regulator denies asking FTX to prioritize withdrawals for Bahamian customers

Published on

January 13, 2023
Read Time:1 Minute, 58 Second

The Securities Fee of the Bahamas (SCB) has denied ordering or authorizing crypto alternate FTX to prioritize withdrawals from Bahamian prospects.

In a November 12 assertion, the Securities Fee vehemently denied the contents of a November 11 letter expression by FTX on Twitter, which recommended it had been directed by “Bahamian HQ regulators and supervisors” to facilitate the withdrawal of Bahamian funds.

“The Fee want to level out that FTX Digital Markets, Ltd. didn't direct, authorize or counsel the prioritization of withdrawals for Bahamian prospects.” read the assertion shared on the SCB's Twitter web page.

Securities Fee Addresses FTX Assertion on Bahamian Withdrawals pic.twitter.com/OZKWwicSuN

— Securities Fee of the Bahamas (@SCBgov_bs) November 12, 2022

Ever since FTX suspended payouts on Nov. 9, the crypto alternate's shoppers have been looking for methods to withdraw their locked funds, with a lot of the exercise taking place throughout the Bahamas.

Methods have ranged from shopping for non-fungible tokens (NFTs) on Bahamas-based accounts to providing rewards for FTX workers to vary their nation of residence to the Bahamas.

Additionally Learn: Sam Bankman-Fried is 'below surveillance' within the Bahamas making an attempt to flee to Dubai

Nonetheless, SCB has warned that any withdrawal of funds could possibly be clawed again as a part of any potential liquidation proceedings of the agency.

"The Fee additional notes that such transactions might qualify as contestable preferences below the insolvency regime and consequently end in funds being recovered from Bahamian prospects," it famous, including:

"In any occasion, the Fee doesn't condone any preferential therapy given to traders or shoppers of FTX Digital Markets Ltd. or in any other case."

SCB's newest assertion comes simply days after the securities regulator froze FTX's belongings on Nov. 10 and suspended FTX's registration within the nation.

The SCB has additionally stripped the powers of FTX's administrators, saying it decided that the "prudent plan of action" was to put FTX in preliminary liquidation "to protect belongings and stabilize the corporate".

In line with the assertion, the Bahamas Supreme Court docket appointed an interim liquidator, saying, "No belongings of FDM, consumer belongings or belief belongings of FDM could also be transferred, assigned or in any other case handled with out the written consent of the interim liquidator."

Cointelegraph reached out to FTX for remark however didn't obtain a right away response.

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Azeez Mustafa
Azeez began his FinTech career path in 2008 after growing interest and intrigue about market wizards and how they managed to become victorious on the battlefield of the financial world. After a decade of learning, reading and training the ins and outs of the industry, he’s now a sought after trading professional, technical/currency analyst and funds manager – as well as an author.
Last Updated : January 13, 2023
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