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The Bahamas, where FTX CEO Sam Bankman-Fried moved the exchange's headquarters back in September last year, has begun checking the company's legality of actions.
The Bahamas Securities Commission has issued an order to freeze the assets of the FTX cryptocurrency exchange amid liquidity problems.The agency said this on Thursday, adding that it had also suspended the registration of FTX's operations and asked the Supreme Court of the Bahamas to appoint an interim liquidator.
The regulator stated that FTX's assetsmisused or managed or transferred to Alameda Research. The Commission considers these actions potentially illegal, and the only correct solution in this situation is to subject FTX Digital Markets to preliminary liquidation in order to preserve assets and stabilize the situation.
FTX CEO Sam Bankman-Friedmoved the company's headquarters from Hong Kong to the Bahamas last September, citing the move to provide clarity on cryptocurrency regulation in the region. In May of this year, the company hosted a large business conference for 2,000 people, attended by prominent figures from Wall Street.
Earlier, Japan's Financial Services Agency (FSA) required the Japanese branch of the FTX exchange to suspend all over-the-counter derivatives transactions to protect the interests of investors and creditors.
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