Securities Commission Addresses FTX Statement on Bahamian Withdrawals

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Key Takeaways:

  • The Securities Commission of the Bahamas interrogated FTX s decision to permit withdrawals in the Bahamas.
  • The commission, however, claimed in a statement that it had not “directed, authorised or suggested” that FTX give local withdrawals priority.

The Securities Commission of The Bahamas (SCB) refuted the claim made by FTX regarding the restart of withdrawals in The Bahamas in a press release on November 12.

According to a statement posted on the Securities Commission of the Bahamas’ (SCB) Twitter account, the financial regulator did not mandate that the defunct cryptocurrency exchange FTX permit withdrawals for users in the nation.

According to a person familiar with the situation, Sam Bankman-Fried was questioned by Bahamian police and regulators a day after his digital-asset empire sought Chapter 11 protection. According to analysts, tokens worth about $662 million strangely drifted out of FTX’s US and international exchanges.

The SCB stated that the Commission does not support the special privileges of any investor or client of FTX Digital Markets Ltd. or elsewhere. The Commission wishes to recommend that it has not aimed directly, authorised, or proposed to FTX Digital Markets Ltd. the prioritisation of withdrawals for Bahamian clients.

After FTX cited “Bahamian HQ’s regulation and regulators” as the purpose it fostered withdrawals in the nation, the SCB made its statement.

 The Securities and Exchange Commission and the Commodity Futures Trading Commission are looking into whether FTX improperly managed customer funds.

On November 11, Zane Tackett, the former director of institutional sales at FTX, tweeted that the exchange would permit withdrawals for Bahamian clients. Tackett claimed in the statement that the withdrawals were permitted in accordance with authorities.

As a result, many FTX users tried to use Bahamians to help them transfer money. Some even offered FTX workers bribes to switch their nationality to The Bahamas so they could assist with money withdrawals.

The SCB asserted that the regulator had not “guided, authorised, or suggested” that FTX give local withdrawals priority.

The regulator, in a way explained that the withdrawals that FTX processed for Bahamian customers might be deemed invalid and, as a result, overturned. The regulator insisted that preferential treatment of any FTX customers is not something it “condones.”

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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