Reports said that the Securities Commission of the Bahamas has taken action to “freeze assets of FTX Digital Markets and related parties.” FTX Digital Markets is the Bahamian subsidiary of Sam Bankman-Fried’s FTX Trading Ltd., which owns and operates crypto trading platform FTX.com.
It has been reported that the regulator has also “suspended” the firm’s registration and “applied to the Supreme Court of the Bahamas for the appointment of a provisional liquidator of FTX Digital Markets Ltd. (FDM).”
Brian Simms, an attorney with Lennox Paton, has been appointed as the provisional liquidator.
The Bahamian Securities Commission further explained:
“The powers of the directors of FDM have been suspended and 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.”
However, the securities watchdog revealed that it is “aware of public statements suggesting that the clients’ assets were mishandled, mismanaged and/or transferred to Alameda Research,” noting that “any such actions would have been contrary to normal governance, without client consent, and potentially unlawful.”
The Bahamian securities regulator emphasized:
“The Commission determined that the prudent course of action was to put FDM into provisional liquidation to preserve assets and stabilize the company.”
Thus, in the US, the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Department of Justice (DOJ) are reportedly investigating FTX.
Source: Bitcoin News