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The Bahamas regulator transfers FTX assets to government wallets for “safe keeping”

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The Bahamas regulator transfers FTX assets to government wallets for “safe keeping”



The Bahamian regulator replied:

The Commission would like to inform you that it hasn’t authorized, directed or suggested to FTXDigital Markets Ltd. prioritizing withdrawals for Bahamian customers. Further, the Commission notes that such transactions could be considered voidable preferences under insolvency law and result in the recovery of funds from Bahamian clients. The Commission will not tolerate any preferential treatment of any client or investor of FTXDigital Markets Ltd.

In a Variety interview, Sam Bankman Fried, former CEO and founder of FTX, explained that FTX didn’t invest customer funds on the exchange. However, Alameda Research, FTX’s sister company, had borrowed more money from the exchange’s balance sheet than he realized, leaving FTX vulnerable. Bankman-Fried said that the issue was not caught on time, because of “messy accounting.”

John Ray III, the new CEO at FTX, has criticized Bankman-Fried’s management and governance. Ray III, who hasmore than 40 years of experience in legal and restructuring called the collapse of the exchange “a…



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