The Strategist

Bahamas freezes assets of FTX cryptocurrency operator

11/14/2022 - 12:41

The Bahamas Securities Commission has placed a freeze on the property of FTX Digital Markets, the company that runs the FTX bitcoin exchange. The decision was made in order to stabilize the exchange during a liquidity crisis and preserve assets.
"The Commission is aware of statements made in the media alleging improper use, management, or transfer of customer assets to Alameda Research. Any such actions... may be prohibited by law, the commission claims," Bloomberg cited a press release from the regulator.

The corporation was also given a temporary liquidator by Bahamian authorities. According to the organization, Sam Bankman-Fried, the CEO of FTX Trading, is the subject of an inquiry by the Securities and Exchange Commission (the parent company of FTX Digital Markets).

Alameda Research, a financial institution connected to FTX, was said to have too many tokens on its balance sheet, according to a report from last week. Users started taking their cryptocurrencies out of the exchange amid the announcement that the exchange had collateral in untrustworthy assets, which led to a crash of Bitcoin.