Regulators in the Bahamas, where FTX is headquartered, say the bankrupt crypto exchange’s claims that Bahamian fund withdrawals were requested by officials was false.

See related article: Could FTX woes bring on another crypto freeze resembling Terra-Luna?

Fast facts

  • In a statement released on Sunday, the Securities Commission of the Bahamas claimed they have “not directed, authorized or suggested to FTX Digital Markets Ltd. the prioritization of withdrawals for Bahamian clients.”
  • This contradicts an FTX statement made on Thursday — and highlighted in the commission’s statement — in which FTX claimed, “Per our Bahamian HQ’s regulation and regulators, we have begun to facilitate withdrawals of Bahamian funds. As such, you may have seen some withdrawals processed by FTX recently as we complied with the regulators.”
  • The commission also stated that “such transitions may be characterized as voidable preferences under the insolvency regime and consequently result in clawing back funds from Bahamian customers.”
  • “The Commission does not condone the preferential treatment of any investor or client of FTX Digital Markets LTD. or otherwise,” they added. 
  • The allegations of wrongdoing by FTX follow a slew of recently launched regulatory investigations into the exchange platform, including those of the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Department of Justice (DOJ), and California’s Department of Financial Protection and Innovation (DFPI).

See related article: Binance chief says FTX bailout deal ‘didn’t make sense’