The Securities Commission of the the Bahamas said it has taken action to freeze assets of FTX Digital Markets and related parties.
"The Commission is aware of public statements suggesting that clients' assets were mishandled, mismanaged and/or transferred to Alameda Research. Based on the Commission's information, any such actions would have been contrary to normal governance, without client consent and potentially unlawful," the commission said in a statement that was distributed on Twitter by the Nassau Guardian.
The commission said it had also suspended the registration and applied to the country's Supreme Court for the appointment of a provisional liquidator. The powers of FDM directors have been suspended.
"Since the unfolding of the events involving FDM, the Commission has proactively dealt with the situation and continues to do so," it said. "The Commission determined that the prudent course of action was to put FDM into provisional liquidation to preserve assets and stabilize the company."
The commission did not immediately respond to an emailed request for comment, and phone calls Thursday evening went unanswered.
FTX Digital Markets, a subsidiary of FTX Trading, is licensed and regulated in the Bahamas.
With additional reporting by Nathan Crooks.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.