Bahamas regulator contradicts FTX claim that it was required to process local withdrawals
The Securities Commission of the Bahamas (SCB) did not require failed crypto exchange FTX to allow withdrawals for users in the country, according to a statement shared on the financial regulator’s Twitter account.
“The Commission wishes to advise that it has not directed, authorized or suggested to FTX Digital Markets Ltd. the prioritization of withdrawals for Bahamian clients,” the SCB wrote, adding that “the Commission does not condone the preferential treatment of any investor or client of FTX Digital Markets Ltd. or otherwise.”
The SCB’s statement comes after FTX cited “Bahamian HQ’s regulation and regulators ” as the reason it facilitated withdrawals in the country.
Bahamian accounts that were able to withdraw their funds may not be entitled to keep them, the SCB added, stating that “such transactions may be characterized as voidable preferences under the insolvency regime and consequently result in clawing back funds from Bahamian customers.”
FTX was one of the largest crypto exchanges by volume in the world before imploding and filing for Chapter 11 bankruptcy protection on Friday.
© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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Author: Adam James
