The SEC requested authorization to transfer the assets to digital wallets under their control to benefit the clients of FTX. The Commission said to be concerned that accusations from John Jay Ray III arose after a decision to protect several users.
The collapse of FTX has wreaked havoc on the crypto market, leading regulators in the Bahamas to take drastic measures. The Securities and Exchange Commission (SEC) of that country recently published an official statement explaining why it seized the assets of the bankrupt exchange.
The SEC found it necessary to seize the assets of FTX to assist the interim liquidators appointed by the Supreme Court of the Bahamas.
According to the statement by the SEC, digital asset company FTX is liable under the Bahamas Digital Assets and Registered Exchanges (DARE) Act. Therefore, the SEC suspended its license in the Bahamas and petitioned the Supreme Court to place its assets in interim liquidation.
The Bahamas SEC appealed to the Supreme Court for authorization to transfer the assets to digital wallets under its control. They argue that their purpose is to benefit the customers and creditors of the bankrupt company.
The Collapse of FTX Causes Trouble in the Bahamas
Following the collapse of FTX, Bahamians are looking for a way to make sense of the situation while remaining optimistic. According to The Wall Street Journal, that event shook that island country, which had encouraged that cryptocurrency company to feel at home.
Hurricane Dorian hit the Bahamas hard in 2019 before the 2020 COVID-19 pandemic. Since their economy is highly dependent on tourism and offshore banking, Philip Davis, the Prime Minister of the Bahamas, believed that cryptocurrencies would help them.
The community now suggests that the regret of the collapse of FTX has caused unemployment on the island. The company posted jobs, used USD 100,000 in catering, and set up private transportation services for its workers.
Due to the collapse of FTX, some crypto community members have criticized how it has affected the Bahamas.
The New FTX CEO Questions the Decision by the Bahamas
John Jay Ray III, the new CEO of FTX, recently criticized the actions of the Bahamas SEC. He argued that there were immoderate and inaccurate accusations during the motion to transfer the assets from the company.
The SEC said it is concerned that such arguments arose after a decision to protect the assets of various users.
They also encouraged Ray III to show the necessary evidence to allow justice to continue investigating the FTX case.
In addition, the Securities and Exchange Commission stated that it made the best decision in transferring the assets of FTX. They explained that alleged Chapter 11 debtors suffered significant theft through hacks that still affect their systems.
Finally, they indicated they would continue investigating the facts and circumstances surrounding the FTX liquidity crisis. Furthermore, they said they would hold the company and its management accountable for their wrong decisions.
By Alexander Salazar
