Regulator denies asking FTX to priorities withdrawals for Bahamian purchasers

The statement from the Securities Commission of The Bahamas refutes a claim from FTX that it’s been facilitating withdrawals in accordance with Bahamian laws.

The Securities Commission of The Bahamas (SCB) has denied instructing or authorizing crypto exchange FTX to grade withdrawals of Bahamian purchasers.

In a statement on No. 12, the securities commission vehemently denied the contents on Nov. 11 statements from FTX on Twitter that it had been tutored by “Bahamian HQ’s regulation and regulators” to facilitate the withdrawal of Bahamian funds.

“The Commission desires to advise that it’s not directed, approved or steered to FTX Digital Markets, Ltd. the prioritization of withdrawals for Bahamian purchasers,” scan the statement, that was shared on the SCB’s Twitter page.

Securities Commission Addresses FTX Statement on Bahamian Withdrawals pic.twitter.com/OZKWwicSuN

— Securities Commission of The Bahamas (@SCBgov_bs) Nov 12, 2022

Since FTX paused withdrawals on Nov. 9, the crypto exchange’s customers are making an attempt to search out means to withdraw their barred funds, with abundant activity longing for the state.

Strategies have ranged from shopping for non-fungible tokens (NFTs) on state-based accounts to giving FTX workers bounties to vary their country of residence to The Bahamas.

However, the SCB has warned that any withdrawal of funds might be clawed back as a part of the firm’s potential liquidation proceedings.

“The Commission any notes that such transactions could also be characterized as revocable preferences below the economic condition regime and consequently lead to clawing back funds from Bahamian customers,” it noted, adding:

“In any event, the Commission doesn’t forgive the advantageous treatment of any capitalist or consumer of FTX Digital Markets Ltd. or otherwise.”

The latest statement from the SCB comes solely days after the securities regulator froze FTX’s assets on Nov. 10 and suspended FTX’s registration within the country.

The SCB has conjointly stripped the powers from the administrators of the FTX and aforementioned it determined the “prudent course of action” was to place FTX into a conditional liquidation “to preserve assets and stabilize the corporate.”

According to the statement, the Bahamian Supreme Court appointed a conditional liquidator and aforementioned, “no assets of FDM, consumer assets, or trust assets controlled by FDM will be transferred, assigned, or otherwise forbidden, while not the written approval of the conditional liquidator.”