The Securities Commission of The Bahamas (SCB) — the country's securities regulator — froze the assets of FTX Digital Markets (FDM) and "related parties" on Nov. 10 and suspended FTX's registration in the country.
The SCB has now stripped powers from the directors of FTX and said it determined the "prudent course of action" was to put FTX into a provisional liquidation "to preserve assets and stabilize the company."
According to the statement, the Bahamian Supreme Court appointed a provisional liquidator and said "no assets of FDM, client assets, or trust assets held by FDM can be transferred, assigned, or otherwise dealt with, without the written approval of the provisional liquidator."
FTX is headquartered in the Bahamas and FTX Digital Markets is the Bahamian subsidiary of the exchange with FTX US a separate, United States-based entity.
Cointelegraph contacted FTX and the SCB for comment but did not get an immediate response.
Related: FTX turmoil increases scrutiny of industry, something institutional investors have been waiting for The crisis with FTX has also drawn scrutiny from regulators in the U.S. with the House of Representatives Financial Services Committee chair, Maxine Waters, pushing for greater consumer protection and more federal oversight of cryptocurrency trading platforms.

Source - Coin Telegraph

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