On Thursday, November 10, the assets of FTX Digital Markets (FDM) and “related parties” were frozen by the Securities Commission of The Bahamas (SCB), the country’s securities regulator, on Thursday, November 10.
The Commission suspended FTX Digital Markets Ltd.’s registration and appointed Brian Simms as a provisional liquidator for the company (FDM).
According to the statement from the release:
“Additionally, the powers of the directors of FDM have been suspended and no assets of FDM, client assets or trust assets held by FDM, can be transferred, assigned or otherwise dealt with, without the written approval of the provisional liquidator.”
The Commission acknowledged in the release that it is aware of public claims that the assets of clients may have been mismanaged, handled inappropriately, or moved to Alameda Research. Such actions would have violated standard governance, been done without the client’s consent, and were potentially unlawful.
“Since the unfolding of events involving FDM, the Commission has proactively dealt with the situation and continues to do so. The Commission determined that the prudent course of action was to put FDM into provisional liquidation to preserve assets and stabilize the company,” The statement said.
Executives of FDM, including Bankman-Fried, have lost operational power, and assets belonging to FTX and its clients cannot be moved without Simms’ prior approval.
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