Bahamas securities regulator freezes FTX exchange assets

SBF Crypto exchange FTX

On Thursday, the assets of the local branch of the troubled cryptocurrency exchange FTX were frozen by a Bahamas securities regulator.

According to a formal statement released by the Securities Commission of the Bahamas (BSC) on Thursday, FTX Digital Markets Ltd. (FDM) and associated parties have had their assets frozen and their registration suspended.

The Securities Commission of The Bahamas also took the first step toward putting FTX Digital Markets (FDM), a local subsidiary, into what is known as “provisional liquidation,” where assets will be preserved for the time being rather than being distributed to creditors.

The commission continued by saying that it is aware of statements made in the media suggesting that the client assets held by FTX were “mishandled, mismanaged and/or transferred to Alameda Research,” which may have been illegal.

The arrangement appears to be potentially illegal without client consent, according to the commission’s initial findings, the watchdog said. In order to oversee its investigation, the regulator chose Brian Simms, senior partner and director of litigation and insolvency at the law firm LennoxPaton.

Bankman-Fried and the other executives of FDM have lost their operational authority, and FTX and its clients’ assets cannot be moved without Simms’ prior approval.

SBF crypto exchange FTX, which is in danger of going bankrupt, is officially registered in the Bahamas. Local authorities also mandated that FTX Japan, its Japanese subsidiary, cease operations until December 9.

Bankman-Fried reportedly needs US$8 billion to save FTX. claims to have stopped customer withdrawals and onboarding, but it tweeted early on Friday morning that it was still supporting Bahamian fund withdrawals in accordance with local regulators.


Roland is a Public Relations & Communications guru with an immense passion for the blockchain and crypto industry. A fusion of his expertise and passion led to the dawn of Optimisus in 2020.