FTX Digital Markets (FDM) and “related parties” have been frozen by the Bahamas Securities Commission (BSC) on Nov. 10, and the company’s registration in the country has been suspended as a result. “Today the Securities Commission of The Bahamas took action to freeze assets of FTX Digital Markets and related parties,” the agency said in a statement. FTX’s registration was suspended as well, according to the agency, and the commission asked the Supreme Court of the Bahamas for the appointment of a provisional liquidator.
A statement from the agency said it was aware of statements that suggested FTX’s assets had been mismanaged, mishandled, or were transferred to Alameda Research in a manner that was improper. Commission officials deemed these actions potentially unlawful and recommended provisional liquidation of FTX Digital Markets in order to maintain assets and stabilize the company.
It was stated in the statement that the Bahamian Supreme Court appointed a provisional liquidator and that “no assets of FDM, client assets, or trust assets held by FDM can be transferred, assigned, or otherwise dealt with, without the written approval of the provisional liquidator.”
Additionally, the crisis surrounding the FTX trading platform has drawn the attention of regulators throughout the world, with the chair of the House of Representatives Financial Services Committee, Maxine Waters, urging for greater consumer protection and for the federal government to better oversee cryptocurrency trading platforms.
As FTX’s troubles grew worse, the CEO of Binance, Changpeng “CZ” Zhao, announced on November 6, 2022, that FTT, the native token of rival exchange FTX, would be liquidated by the world’s largest cryptocurrency exchange, Binance. According to White House Press Secretary Karine Jean-Pierre, US President Joe Biden is aware of the crypto market situation, including FTX’s liquidity crisis, which demonstrates why prudent regulation of cryptocurrencies is necessary.