Bahamas Regulator Takes Action to Seize FTX’s Cryptocurrencies to ‘Protect’ Clients and Creditors – Bitcoin News


The Securities Fee of the Bahamas has ordered crypto trade FTX to switch its cryptocurrencies to a pockets managed by the regulator. The “Pressing interim regulatory motion was needed to guard the pursuits” of FTX’s purchasers and collectors, stated the regulator.

Bahamas Regulator Takes Motion to Seize FTX’s Cryptocurrencies for ‘Safekeeping’

The Securities Fee of the Bahamas (SCB) introduced Thursday that it has taken “the motion of directing the switch of all digital belongings of FTX Digital Markets Ltd. (FDM) to a digital pockets managed by the Fee, for safekeeping.” FTX Digital Markets is the Bahamian subsidiary of Sam Bankman-Fried’s FTX Buying and selling Ltd., which owns and operates the crypto buying and selling platform

The securities regulator famous that the company is “appearing beneath the authority of an order made by the Supreme Court docket of the Bahamas,” elaborating:

Pressing interim regulatory motion was needed to guard the pursuits of purchasers and collectors of FDM.

The regulator additional detailed: “Underneath the Digital Property and Registered Exchanges Act, 2020 (DARE Act), the Fee has the authority to use for a judicial order to guard the pursuits of purchasers or clients of a registrant of the Fee beneath the DARE Act.”

The announcement continues:

Over the approaching days and weeks, the Fee will interact with different regulators and authorities, in a number of jurisdictions, to deal with issues affecting the collectors, purchasers and stakeholders of FDM globally to acquire the absolute best end result.

The Securities Fee of the Bahamas took motion to freeze the belongings of FTX Digital Markets and associated events on Nov. 10 as troubles on the crypto trade unfolded.

The regulator additionally utilized to the Supreme Court docket to nominate Brian Simms as a court-supervised provisional liquidator. As well as, Kevin Cambridge and Peter Greaves of Pricewaterhousecoopers (PwC) have been permitted by the court docket as joint provisional liquidators.

What do you consider the Securities Fee of the Bahamas ordering FTX to switch digital belongings to a pockets it controls for “safekeeping”? Tell us within the feedback part under.

Kevin Helms

A pupil of Austrian Economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His pursuits lie in Bitcoin safety, open-source techniques, community results and the intersection between economics and cryptography.

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