The assertions made by the bankrupt cryptocurrency exchange that Bahamian fund withdrawals were required by officials were untrue, according to regulators in the Bahamas, where FTX is based.
The Securities Commission of the Bahamas asserted in a statement issued on Sunday that it had “not directed, authorized or suggested to FTX Digital Markets Ltd. the prioritization of withdrawals for Bahamian clients.”
This goes against a point made by FTX on Thursday that was emphasized in the commission’s announcement.
“Per our Bahamian HQ’s regulation and regulators, we have begun to facilitate withdrawals of Bahamian funds. As such, you may have seen some withdrawals processed by FTX recently as we complied with the regulators.”
The commission also stated that “such transitions may be characterized as voidable preferences under the insolvency regime and consequently result in clawing back funds from Bahamian customers.”
“The Commission does not condone the preferential treatment of any investor or client of FTX Digital Markets LTD. or otherwise,” they added.
The regulatory inquiries into the exchange platform by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Department of Justice (DOJ), and California’s Department of Financial Protection and Innovation all recently began. The allegations of wrongdoing by FTX are the latest in this series (DFPI).
