The Bahamas Securities and Exchange Commission (CVM) released an official statement explaining the reasons for the seizure of the assets of FTX Digital Markets Ltd. (FDM).

According to the CVM, the decision to seize the assets was based on the assistance they deemed necessary to provide the “Provisional Liquidators” appointed by the Supreme Court of The Bahamas.

The company FDM has been incorporated and registered as a digital asset company, for which they must respond under the Digital Assets and Registered Exchanges Act of the Bahamas (DARE Act), as per the statement published by the CVM on Wednesday, November 23.

As a result, the CVM suspended FTX’s license in the Bahamas and filed a petition with the Supreme Court of the Bahamas to place the company’s assets in provisional liquidation.

“The Commission has requested an additional order from the Supreme Court of The Bahamas to authorize it, under the DARE Act, to transfer all of FTX’s digital assets to digital wallets under the exclusive control of the Commission for the benefit of customers and creditors. of FDM “, quoted the statement.

New FTX CEO questions CVM decision

John Jay Ray III, the new CEO of FTX Trading Ltd, questioned the actions taken by the Bahamas CVM, citing alleged “immoderate and inaccurate allegations made in the motion to transfer the company’s assets”.

For this reason, the CVM regretted the accusations and indicated that it was worrying that such accusations are presented after a decision whose main objective was to protect the assets of different users of the exchange.

In addition, CVM encouraged Ray III to present the necessary evidence to analyze this information and allow justice to continue its investigations into the FTX case.

Likewise, the Commission argued that it had made the best decision in transferring the assets of FTX, since the “alleged Chapter 11 debtors″ suffered significant thefts through hacks that continue to affect their systems.

Finally, they indicated that they will continue to investigate all “facts and circumstances” related to the FTX liquidity crisis and will hold both the company and its management accountable for the decisions taken.

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