The Securities Fee of The Bahamas (SCB) has denied instructing or authorizing crypto alternate FTX to prioritize withdrawals of Bahamian shoppers.
In a press release on Nov. 12, the securities fee vehemently denied the contents of a Nov. 11 assertion from FTX on Twitter that advised it had been instructed by “Bahamian HQ’s regulation and regulators” to facilitate the withdrawal of Bahamian funds.
“The Fee needs to advise that it has not directed, approved or advised to FTX Digital Markets, Ltd. the prioritization of withdrawals for Bahamian shoppers,” read the assertion, which was 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
Since FTX paused withdrawals on Nov. 9, the crypto alternate’s clients have been searching for means to withdraw their locked funds, with a lot of the exercise going by means of The Bahamas.
Methods have ranged from shopping for nonfungible tokens (NFTs) on Bahamas-based accounts to providing FTX workers bounties to vary their nation of residence to The Bahamas.
Associated: Sam Bankman-Fried is ‘below supervision’ in Bahamas, seeking to flee to Dubai
Nevertheless, the SCB has warned that any withdrawal of funds might be clawed again as a part of the agency’s potential liquidation proceedings.
“The Fee additional notes that such transactions could also be characterised as voidable preferences below the insolvency regime and consequently lead to clawing again funds from Bahamian clients,” it famous, including:
“In any occasion, the Fee doesn’t condone the preferential remedy of any investor or consumer of FTX Digital Markets Ltd. or in any other case.”
The newest assertion from the SCB comes solely 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 from the administrators of the FTX and mentioned it decided the “prudent plan of action” was to place FTX right into a provisional liquidation “to protect belongings and stabilize the corporate.”
In line with the assertion, the Bahamian Supreme Courtroom appointed a provisional liquidator and mentioned, “no belongings of FDM, consumer belongings, or belief belongings held by FDM could be transferred, assigned, or in any other case handled, with out the written approval of the provisional liquidator.”
Cointelegraph has reached out to FTX for remark however has not acquired a right away response.
