Regulator denies asking FTX to prioritize withdrawals for Bahamian clients

The Securities Commission of The Bahamas (SCB) has denied instructing oregon authorizing crypto speech FTX to prioritize withdrawals of Bahamian clients. 

In a connection connected Nov. 12, the securities committee vehemently denied the contents of a Nov. 11 statement from FTX connected Twitter that suggested it had been instructed by “Bahamian HQ’s regularisation and regulators” to facilitate the withdrawal of Bahamian funds.

“The Commission wishes to counsel that it has not directed, authorized oregon suggested to FTX Digital Markets, Ltd. the prioritization of withdrawals for Bahamian clients,” read the statement, which was shared connected the SCB's Twitter page. 

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

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

Since FTX paused withdrawals connected Nov. 9, the crypto exchange's customers person been attempting to find means to withdraw their locked funds, with overmuch of the enactment going done the Bahamas.

Strategies person ranged from buying non-fungible tokens (NFTs) connected Bahamas-based accounts to offering FTX employees bounties to alteration their state of residence to The Bahamas.

Related: Sam Bankman-Fried is ‘under supervision’ successful Bahamas, looking to fly to Dubai

However, the SCB has warned that immoderate withdrawal of funds could beryllium clawed backmost arsenic portion of the firm's imaginable liquidation proceedings.

“The Commission further notes that specified transactions whitethorn beryllium characterized arsenic voidable preferences nether the insolvency authorities and consequently effect successful clawing backmost funds from Bahamian customers,” it noted, adding: 

“In immoderate event, the Commission does not condone the preferential attraction of immoderate capitalist oregon lawsuit of FTX Digital Markets Ltd. oregon otherwise.”

The latest connection from the SCB comes lone days aft the securities regulator froze FTX's assets connected Nov. 10 and suspended FTX's registration successful the country. 

The SCB has besides stripped the powers from the directors of the FTX and said it determined the “prudent people of action” was to enactment FTX into a provisional liquidation “to sphere assets and stabilize the company.”

According to the statement, the Bahamian Supreme Court appointed a provisional liquidator and said, “no assets of FDM, lawsuit assets, oregon spot assets held by FDM tin beryllium transferred, assigned, oregon different dealt with, without the written support of the provisional liquidator.”

Cointelegraph has reached retired to FTX for remark but has not received an contiguous response.