Bahamas Freezes FTX Property, Requires Liquidator

 Bahamas Freezes FTX Property, Requires Liquidator

It seems the honeymoon is over between SBF and the Bahamas. The Securities Fee of the West Indies nation issued an order on Thursday to freeze the belongings of the embattled cryptocurrency trade FTX. 

“At present the Securities Fee of The Bahamas took motion to freeze belongings of FTX Digital Markets and associated events,” the company wrote, including that the fee additionally suspended FTX’s operation registration and requested the Supreme Courtroom of the Bahamas for a provisional liquidator to be appointed.

The letter, posted by the Nassau Guardian on Twitter, follows per week of bother for one-time crypto golden boy Sam Bankman-Fried and FTX, as soon as one of many largest cryptocurrency exchanges on this planet.

The company mentioned it’s conscious of statements suggesting that FTX’s belongings had been mishandled, mismanaged, or transferred to Alameda Analysis. The fee referred to as these actions probably illegal and mentioned the “prudent plan of action” was to place FTX Digital Markets into provisional liquidation to “protect belongings and stabilize the corporate.”

“The Fee is dedicated to working with the provisional liquidator to endeavor to acquire the absolute best consequence for the shoppers and different stakeholders of FTX,” the company added.

FTX’s troubles started on November 6, 2022, when Binance CEO Changpeng “CZ” Zhao mentioned that the world’s largest cryptocurrency trade was liquidating its holdings of FTT, the native token of rival trade FTX.

Binance held a substantial variety of FTT tokens, round 23 million, value round $529 million, in accordance with Investopedia. When Binance introduced liquidating its total place, inflicting a run on FTX, FTT’s worth sank 85.6% and is at present buying and selling at $3.43, down from $24.01 the week earlier than.

In September 2021, FTX opened its new headquarters within the Bahamas after transferring the operation out of Hong Kong, calling the Bahamas one of many few locations to arrange a complete framework for crypto.

The Bahamas has embraced digital foreign money, together with launching a central financial institution digital foreign money, the sand greenback. Coupled with pleasant crypto rules, corporations like OKX and FTX opened workplaces within the island nation.

In Could of this 12 months, Sam Bankman-Fried, nonetheless within the honeymoon part of FTX’s transfer to the Bahamas, held a four-day convention within the Bahamas. The occasion attracted not solely Wall Avenue but in addition Tom Brady, Gisele Bundchen, Invoice Clinton, Tony Blair, Andrew Yang, Katy Perry, Orlando Bloom, Apolo Ohno, Rick Fox, Udonis Haslem, and Liam Payne from One Path.


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