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HomeNewsFTX’s digital belongings seized in The Bahamas for ‘safekeeping’ | Crypto

FTX’s digital belongings seized in The Bahamas for ‘safekeeping’ | Crypto


Securities Fee of The Bahamas says it has taken management of FTX Digital Markets’ belongings to guard buyers.

The Bahamas unit of troubled cryptocurrency alternate FTX has had its digital belongings seized by monetary authorities within the Caribbean nation.

The Securities Fee of The Bahamas mentioned on Thursday it had transferred the digital belongings of FTX Digital Markets (FDM) to a digital pockets underneath its management for “safekeeping”.

The regulator mentioned it had taken the motion on Saturday to guard the pursuits of purchasers and buyers.

“Pressing interim regulatory motion was essential to guard the pursuits of purchasers and collectors of FDM,” the fee mentioned in a press release.

“Below the Digital Property and Registered Exchanges Act, 2020 (“DARE Act”), the Fee has the authority to use for a judicial order to guard the pursuits of purchasers or prospects of a registrant of the Fee underneath the DARE Act.”

The regulator mentioned it was its understanding that FDM shouldn’t be a celebration to chapter proceedings in the US involving mum or dad firm FTX.

“Over the approaching days and weeks, the Fee will have interaction with different regulators and authorities, in a number of jurisdictions, to deal with issues affecting the collectors, purchasers and stakeholders of FDM globally to acquire the absolute best consequence,” it mentioned.

The announcement comes after a US court docket submitting on Tuesday confirmed that FDM was in search of safety underneath Chapter 15 of the US Chapter Code.

Non-US corporations use the availability to guard themselves from collectors in search of to file lawsuits or tie up belongings within the US.

FTX filed for chapter final week after buyers rushed to withdraw $6bn from the platform and a proposed rescue deal by its rival Binance fell by way of.

The collapse of FTX, the third-largest crypto alternate, has despatched shockwaves by way of the crypto sector, prompting allegations of fraud and comparisons to the collapse of Lehman Brothers.

In a court docket submitting on Thursday, new FTX CEO John Ray mentioned he had by no means seen such a “full failure of company controls and such an entire absence of reliable monetary data as occurred right here”.

Former CEO and founder Sam Bankman-Fried, who stepped down final week, mentioned in an interview with Vox this week he regretted his resolution to file for chapter safety and that regulators “don’t shield prospects in any respect”,  earlier than showing to stroll again a few of his feedback.

Bankman-Fried and several other celebrities who promoted FTX are going through an $11bn class motion lawsuit from buyers, whereas the US Division of Justice and the Securities and Alternate Fee are investigating whether or not Bankman-Fried or his firm violated securities legislation.

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