Bahamas Securities Commission: Will Continue to Investigate FTX Liquidity Crisis and Any Potential Violations of Bahamas Law

The Securities Commission of the Bahamas (SCB) issued a statement explaining the previous doubts about controlling the assets of FTX Digital Markets Ltd (FDM), a subsidiary of FTX Bahamas. The FDM business license, followed by a petition to the Supreme Court of the Bahamas, put FDM into provisional liquidation. Given the nature of digital assets and the risks associated with hacking and attacks, the Commission determined that liquidating FDM would not be sufficient to protect FDM's customers and creditors. On November 12, the Commission requested that all of FDM’s digital assets be transferred to wallets controlled by the Commission pursuant to an additional order of the Supreme Court of the Bahamas in the DARE Act. The Bahamas Securities Commission stated that it will continue to assess the situation and take steps in accordance with the directions issued by the Supreme Court of the Bahamas, and will cooperate with other regulatory authorities to take further actions as needed to preserve FDM's assets and protect the interests of FDM's customers and creditors. Additionally, the Commission will continue to investigate the facts and circumstances surrounding the FTX liquidity crisis and any possible violations of Bahamian law.