Bahamas Securities Commission: Will continue to investigate the FTX liquidity crisis and any possible violations of Bahamian law

ChainCatcher news, the Securities Commission of the Bahamas (SCB) issued a statement addressing questions regarding the control of assets of FTX's Bahamian subsidiary, FTX Digital Markets Ltd (FDM). On November 10, the Commission determined that FDM's customers and creditors need protection under the DARE Act and suspended FDM's business license. Subsequently, a petition was filed with the Supreme Court of the Bahamas to place FDM into a temporary liquidation process. Given the nature of digital assets and the risks associated with hacking and attacks, the Commission determined that liquidating FDM alone would not be sufficient to protect FDM's customers and creditors. On November 12, the Commission requested an additional order from the Supreme Court of the Bahamas under the DARE Act to transfer all of FDM's digital assets into a wallet controlled by the Commission.

The Securities Commission of the Bahamas stated that it will continue to assess the situation and take actions in accordance with the directives issued by the Supreme Court of the Bahamas, and will cooperate with other regulatory authorities to take further actions as necessary to preserve FDM's assets and protect the interests of FDM's customers and creditors. Additionally, the Commission will continue to investigate the facts and circumstances surrounding the FTX liquidity crisis and any potential violations of Bahamian law. (source link)