A local financial regulator said on Saturday, cryptocurrency The exchange said that FTX is not required to allow Bahamas-based clients to make priority withdrawals of their funds.
Bahamas Regulator Denies FTX Claim That It Has Ordered Priority Withdrawal Of Funds From Customers In The Country
The Bahamas Securities Commission (SCB) issued a statement on Twitter today, arguing that FTX’s latest tweet, which states that Bahamian users can withdraw funds at the call of the country regulator, is false.
“As per the regulations of our Bahamian Center and regulators, we have begun to facilitate the withdrawal of Bahamian funds,” the company said in a tweet on Thursday.
SCB said in a statement today that it “does not direct, authorize or recommend” FTX Digital Markets to prioritize withdrawals for Bahamian users.
The following statements were used in the statement:
“The Commission further states that such transactions may qualify as voidable preferences under the bankruptcy regime and may result in withdrawal of funds from Bahamian clients as a result.
In any event, the Commission shall be paid by FTX Digital Markets Ltd. does not tolerate preferential treatment to any investor or customer of its company.”
SCB froze the company’s assets in the Bahamas late Thursday, but the exchange had already stopped withdrawals a few days ago.
According to data from Nansen, despite this halt, some users were able to withdraw around $7 million worth of various cryptocurrencies in a matter of hours Thursday morning.
Foreign Users Could Also Withdraw Funds From The Bahamas
According to CNBC’s report, some FTX users located outside of the Bahamas were also seen trying to withdraw money with the help of local users.
Foreign users have purchased high-value NFTs from Bahamas-based users, possibly with an agreement where Bahamas-based users can withdraw and hold some of the locked funds.
FTX declared bankruptcy on Friday, days after the deal for Binance to buy the exchange fell through.
Adding to the chaos of the exchange was apparently hacked for $600 million late Friday, though FTX later reported that it was able to divert some of its funds back to cold storage wallets.
The new CEO of the exchange, John Ray III, said the company is working with law enforcement.
*Not investment advice.
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