Bahamas Regulatory Agency Shut Out FTX Asset As Trouble Continues
The troubled crypto exchange’s issues seem to have no end, as another regulatory body has frozen the company’s funds. Reports making the rounds indicated that the Securities Commission of the Bahamas (SCB) had frozen the almost-bankrupt crypto exchange’s assets.
The regulator has also gotten court approval to appoint a provisional liquidator for the firm. Accordingly, the country’s Supreme Court appointed attorney Brian Simms as the liquidator.
As a result, FTX’s assets cannot be transferred without the written approval of the liquidator. The statement from the Commission read: “The Commission has been informed of the news that customer funds are either mishandled, mismanaged, or have moved to Alameda Research.”
“The agency’s move is based on the public statement, which shows that such actions are unlawful as they are against the rules and the client’s consents,” the statement added.
The latest development signals the continuation of a series of unfortunate events that have impacted the crypto exchange for some time.
The SCB noted that the latest action is a measured decision against the unstable firm by putting in motion a provisional liquidation. According to the regulator, the move will help FTX’s assets and ensure its stability.
The Sam Bankman-Fried-led FTX is battling a liquidity crisis due to fund transfer issues with his other firm, Alameda Research. Due to this, the exchange halted withdrawals, with many fearing the worse.
Binance’s Back Out
Moreover, the billionaire has tendered an apology to its users, pledging to do the needful. Bankman-Fried held talks with the rival exchange, Binance, about a possible rescue plan for the embattled firm.
As of November 9, Binance planned to rescue FTX, which generated excitement in the crypto community. But the company backed out of the rescue mission at the last minute. This leaves the FTX on the brink of collapse.
However, the event change comes a day after CEO Changpeng Zhaocan announced to the world that Binance had reached a non-binding agreement to acquire all of FTX’s empires based outside the United States.
The deal would have rescued it from a looming liquidity crisis if the effort had seen the light of day. Binance’s statement on Wednesday shows that at the beginning of the deal, it intended to rescue the FTX empire; however, the agreement was non-binding.
With the deal falling flat, it needs to be made clear who will be next to make a move to review FTX. In his statement to investors, Bankman-Fried admitted a shortfall of close to $8 billion from withdrawal requests, and FTX needs emergency funds to stabilize.
On a broader scale, the failed deal is the latest shocking collapse that the crypto world has experienced this week alone. Earlier, the FTX boss was trying to downplay the extent of the crisis by saying that all was well with the exchange.
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