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According to a local financial regulator, cryptocurrency exchange FTX was not required to permit Bahamas-based consumers to withdraw their money.
In a tweet posted on Twitter on Saturday, the Securities Commission of the Bahamas (SCB) claimed that a recent tweet by FTX acknowledging that Bahamian customers could withdraw the money at the regulator’s urging was false.
On Thursday, FTX tweeted that it has “started to assist withdrawals of Bahamian monies” in accordance with the rules and regulations of its Bahamian headquarters.
In its statement on Saturday, SCB stated that it had not “advised, sanctioned or indicated to FTX Digital Markets” that it give Bahamian users priority when making withdrawals.
In its statement on Saturday, SCB stated that it had not “advised, sanctioned or indicated to FTX Digital Markets” that it give Bahamian users priority when making withdrawals. According to the insolvency regime,
The Commission further observes that such transactions may be considered as voidable preferences and hence result in clawing back monies from Bahamian clients.” “In any case, the Commission disapproves of giving any investor or client of FTX Digital Markets Ltd. preferential treatment. Late on Thursday, SCB froze FTX’s assets in the Bahamas, albeit the exchange had already stopped transactions a few days earlier.
Notwithstanding this stoppage, some users were nevertheless able to withdraw various cryptocurrencies totaling close to $7 million in a short period of time on Thursday morning, according to Nansen data.
According to CNBC, a number of FTX users from outside the Bahamas also appeared to attempt to withdraw money with the aid of native users. These Bahamas-based users sold the foreign users high-valued NFTs, apparently with the understanding that the Bahamas-based users would be permitted to withdraw and retain a portion of the locked-up cash.
Days after an agreement for Binance to takeover the exchange fallen through, FTX filed for bankruptcy on Friday.
Although FTX later announced it was able to redirect some of its funds back into cold storage wallets, the exchange was reportedly compromised for $600 million late Friday, adding to the pandemonium.
John Ray III, the exchange’s new CEO, stated that the business complied with the law.
