Regulator denies asking FTX to prioritize withdrawals for Bahamian clients

The statement from the Securities Commission of The Bahamas refutes a claim from FTX that it has been facilitating withdrawals in accordance with Bahamian regulations.

The Securities Commission of The Bahamas (SCB) has denied instructing or authorizing crypto exchange FTX to prioritize withdrawals of Bahamian clients. 

In a statement on Nov. 12, the securities commission vehemently denied a Nov. 11 statement from FTX on Twitter that suggested it had been instructed by “Bahamian HQ’s regulation and regulators” to facilitate the withdrawal of Bahamian funds.

“The Commission wishes to advise that it has not directed, authorized or suggested to FTX Digital Markets, Ltd. the prioritization of withdrawals for Bahamian clients,” read the statement which was shared on the SCB’s Twitter page. 

Securities Commission Addresses FTX Statement on Bahamian Withdrawals pic.twitter.com/OZKWwicSuN

— Securities Commission of The Bahamas (@SCBgov_bs) November 12, 2022

“The Commission further notes that such transactions may be characterized as voidable preferences under the insolvency regime and consequently result in clawing back funds from Bahamian customers.”

“In any event, the Commission does not condone the preferential treatment of any investor or client of FTX Digital Markets Ltd. or otherwise.”

This is a developing story and more information will be added as it becomes available.