On Thursday, the Securities Fee of the Bahamas stated that it has ordered the switch of all digital property held by FTX Digital Markets Ltd (FDM) to a government-controlled pockets for ‘safekeeping’. The order was issued final Saturday.
“The Securities Fee of The Bahamas (‘the Fee’), within the train of its powers as regulator appearing beneath the authority of an Order made by the Supreme Court docket of The Bahamas, took the motion of directing the switch of all digital property of FTX Digital Markets Ltd. (‘FDM’) to a digital pockets managed by the Fee, for safekeeping,” the regulator said within the press launch.
“Pressing interim regulatory motion was obligatory to guard the pursuits of shoppers and collectors of FDM.”
The Fee didn’t clarify why it introduced the order publicly after 5 days or present any particulars concerning the switch.
One other announcement by the Bahamian regulator final Saturday clarified that it didn’t order FTX to renew withdrawals for the residents of the islands, contradicting earlier claims of the collapsed crypto alternate.
2) The quantities withdrawn comprise a small fraction of the property we at the moment maintain available and we’re actively engaged on further routes to allow withdrawals for the remainder of our userbase. We’re additionally actively investigating what we will and may do the world over.
— FTX (@FTX_Official) November 10, 2022
Jurisdictional Struggle?
FTX Digital Markets Ltd, operated as FTX.com, was headquartered in The Bahamas. The worldwide crypto alternate, its US subsidiary, Alameda Analysis, and about 130 different associates filed for chapter in the USA on November 11. Apparently, the Bahamas-based alternate unit filed for Chapter 15 chapter safety in a New York district court docket, whereas the opposite entities sought Chapter 11 chapter safety in Delaware.
The most recent announcement by the Bahamas monetary market watchdog signifies a tussle between the authorities in the USA and the Bahamas for jurisdictional claims over the collapsed crypto alternate, FTX.
In the meantime, the collapsed cryptocurrency alternate was hacked final weekend, draining almost a billion {dollars} value of cryptocurrencies to hacker-controlled wallets.
FTX grew quick earlier than it collapsed to rubble. The alternate was valued at $34 billion in its final funding spherical, attracting funds from main enterprise capitals. Temasek, Sequoia Capital and Smooth Financial institution’s Imaginative and prescient Fund wrote off lots of of thousands and thousands of {dollars} of their funding into the collapsed crypto alternate.
On Thursday, the Securities Fee of the Bahamas stated that it has ordered the switch of all digital property held by FTX Digital Markets Ltd (FDM) to a government-controlled pockets for ‘safekeeping’. The order was issued final Saturday.
“The Securities Fee of The Bahamas (‘the Fee’), within the train of its powers as regulator appearing beneath the authority of an Order made by the Supreme Court docket of The Bahamas, took the motion of directing the switch of all digital property of FTX Digital Markets Ltd. (‘FDM’) to a digital pockets managed by the Fee, for safekeeping,” the regulator said within the press launch.
“Pressing interim regulatory motion was obligatory to guard the pursuits of shoppers and collectors of FDM.”
The Fee didn’t clarify why it introduced the order publicly after 5 days or present any particulars concerning the switch.
One other announcement by the Bahamian regulator final Saturday clarified that it didn’t order FTX to renew withdrawals for the residents of the islands, contradicting earlier claims of the collapsed crypto alternate.
2) The quantities withdrawn comprise a small fraction of the property we at the moment maintain available and we’re actively engaged on further routes to allow withdrawals for the remainder of our userbase. We’re additionally actively investigating what we will and may do the world over.
— FTX (@FTX_Official) November 10, 2022
Jurisdictional Struggle?
FTX Digital Markets Ltd, operated as FTX.com, was headquartered in The Bahamas. The worldwide crypto alternate, its US subsidiary, Alameda Analysis, and about 130 different associates filed for chapter in the USA on November 11. Apparently, the Bahamas-based alternate unit filed for Chapter 15 chapter safety in a New York district court docket, whereas the opposite entities sought Chapter 11 chapter safety in Delaware.
The most recent announcement by the Bahamas monetary market watchdog signifies a tussle between the authorities in the USA and the Bahamas for jurisdictional claims over the collapsed crypto alternate, FTX.
In the meantime, the collapsed cryptocurrency alternate was hacked final weekend, draining almost a billion {dollars} value of cryptocurrencies to hacker-controlled wallets.
FTX grew quick earlier than it collapsed to rubble. The alternate was valued at $34 billion in its final funding spherical, attracting funds from main enterprise capitals. Temasek, Sequoia Capital and Smooth Financial institution’s Imaginative and prescient Fund wrote off lots of of thousands and thousands of {dollars} of their funding into the collapsed crypto alternate.
