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


Bahamas Regulator Takes Action to Seize FTX’s Cryptocurrencies — Says It's 'Necessary to Protect the Interests of Clients and Creditors'

The Securities Commission of the Bahamas has actually bought crypto exchange FTX to move its cryptocurrencies to a wallet managed by the regulator. The “Urgent interim regulative action was essential to secure the interests” of FTX’s customers and financial institutions, stated the regulator.

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

The Securities Commission of the Bahamas (SCB) revealed Thursday that it has actually taken “the action of directing the transfer of all digital possessions of FTX Digital Markets Ltd. (FDM) to a digital wallet managed by the Commission, for safekeeping.” FTX Digital Markets is the Bahamian subsidiary of Sam Bankman-Fried’s FTX Trading Ltd., which owns and runs the crypto trading platform FTX.com.

The securities regulator kept in mind that the company is “acting under the authority of an order made by the Supreme Court of the Bahamas,” elaborating:

Urgent interim regulative action was essential to safeguard the interests of customers and lenders of FDM.

The regulator even more detailed: “Under the Digital Assets and Registered Exchanges Act, 2020 (DARE Act), the Commission has the authority to obtain a judicial order to secure the interests of customers or clients of a registrant of the Commission under the DARE Act.”

The statement continues:

Over the coming days and weeks, the Commission will engage with other regulators and authorities, in numerous jurisdictions, to deal with matters impacting the lenders, customers and stakeholders of FDM worldwide to acquire the very best possible result.

The Securities Commission of the Bahamas acted to freeze the possessions of FTX Digital Markets and associated celebrations on Nov. 10 as difficulties at the crypto exchange unfolded.

The regulator likewise used to the Supreme Court to select Brian Simms as a court-supervised provisionary liquidator. In addition, Kevin Cambridge and Peter Greaves of Pricewaterhousecoopers(PwC) have actually been authorized by the court as joint provisionary liquidators.

What do you consider the Securities Commission of the Bahamas purchasing FTX to move digital possessions to a wallet it manages for “safekeeping”? Let us understand in the remarks area listed below.

Kevin Helms

A trainee of Austrian Economics, Kevin discovered Bitcoin in 2011 and has actually been an evangelist since. His interests depend on Bitcoin security, open-source systems, network impacts and the crossway in between economics and cryptography.

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