The FTX crisis brings with it the inevitable jump to a 100-ft-deep well. Looking ahead to prevent the fall is the only way to safeguard everyone’s interests. Notes like these come onshore following the swift action taken by the Securities Commission of the Bahamas. Authorities praise themselves with the backing of the country’s Attorney General, Ryan Pinder.
To start, here’s what the Commission did on November 12, 2022. It seized all the assets of FTX Digital Markets, the subsidiary of FTX based in the Bahamas. Then, the assets were transferred to a digital wallet controlled by the Commission. Not only is this a reality, but it is a reality that is hard to believe, especially because the speed at which the Commission took control of the situation is commendable as per the standards.
Ryan Pinder emphasized this during his national address, calling it remarkable by any standard. However, the entire walk did not go in the direction where FTX wanted it to go.
The liquidity-hit exchange went on to claim that it holds pieces of evidence that suffice the case, which points out how the government is responsible for directing unauthorized access to the system of debtors solely to obtain digital assets. This statement was made in a filing where the exchange place sought the transfer to the New York region from Delaware.
Tension has since then been rising above with no control whatsoever. John Ray III, the new Chief Executive Officer of FTX, is at the center of the stage in this controversy.
Investigations by the Commission are in their early stages. Authorities have urged all the parties involved to exercise prudence & restraint in their public commentary. It has further been added that any ill-informed speculation does not help at all during investigations like these.
Ryan Pinder clarified by stating that it was misguided to believe that reluctance to communicate details of the ongoing investigation means there is absolutely no progress happening from their side.
FTX is going through the hardest possible phase in its life right now. Once a ruling exchange platform has come down to its knees for a finger that can get it out of this situation. Call it disheartening, but several exchange platforms have said that their interest is either minimal or equal to zero with FTX.
As on November 11, 2022, FTX and Alameda Research have filed for bankruptcy in Delaware court, seeking Chapter 11 bankruptcy protection. FTX exchange followed this with another filing on November 15, 2022, under Chapter 15 in New York.
Founded in 2019, FTX has come to a point where it is closer to witnessing a huge collapse in the market. While it struggles to keep operations active, offerings, including cryptocurrency and crypto derivatives, remain at high risk for the customers. Just like Ryan Pinder, one must appreciate the way and speed with which authorities in the Bahamas have actively taken note of this.