The FTX contagion is growing, and as a result, authorities are shifting their position. The Securities Commission of The Bahamas reportedly issued a press release saying that it had ordered the transfer of all FTX digital assets to a digital wallet.
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Conflicting statements from authorities regarding the alleged FTX hack
Chief Executive Officer of IBC Group Mario Nawfal remarked that the Securities Commission of the Bahamas is now contradicting their earlier statements. In an earlier statement, they clarified that the regulator did not order any certain amount of money to be transferred out of FTX wallets.
However, they now confess that they issued orders for FTX to liquidate all FDM assets. In the letter, it was stated that immediate regulatory action was necessary to safeguard the interests of FTX clients and creditors.
It was brought to light that the commission is unaware that FTX Digital Markets Ltd. is involved in Chapter 11 bankruptcy proceedings in the United States. Commission officials also noted that communication with other oversight bodies would begin in the near future.
The Bahamas’ governing body will communicate with authorities in other countries to resolve issues with FTX’s creditors and other interested parties. Its goal is to achieve the best outcome possible.
FTX spread on a growing population
After filing for Chapter 15 bankruptcy protection, FDM has made this significant statement. Companies based in countries other than the United States reportedly use this law to shield themselves from debt collectors. After a flurry of investor withdrawals and a failed rescue arrangement with Binance, FTX ultimately declared bankruptcy.
Major ripples have been felt throughout the global cryptocurrency market as a result of FTX’s demise. This has led some to speculate that fraud may have been perpetrated. In spite of parallels being drawn to the Lehman Brothers bankruptcy, this event stands on its own.
Source: Google Trend