The Bahamas regulator said crypto exchange FTX does not allow Bahamas-based clients to withdraw their funds.
FTX declared bankruptcy on Friday, days after the deal for Binance to buy the exchange fell through. Adding to the chaos of the exchange, it suffered a $600 million hack late Friday. FTX later reported that it was able to redirect some of its funds back to cold storage wallets. The exchange’s new CEO, John Ray III, said the company is working with law enforcement.
Bahamian Regulator: We Have Not Allowed FTX Withdrawals
Everything about FTX is now in doubt. The Bahamian regulator has denied the exchange’s recent statements that they are collaborating.
The Bahamas Securities Commission (SCB) issued a statement on Twitter, arguing that FTX’s latest tweet stating that Bahamian users were able to withdraw funds at the call of the regulator was false.
“We have begun facilitating the withdrawal of Bahamian funds, as per the regulations and regulators of our Bahamian Center,” FTX said in a tweet on Thursday.
1) 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.
— FTX (@FTX_Official) November 10, 2022
The SCB said it did not “direct, authorize or recommend” FTX Digital Markets to prioritize withdrawals for Bahamian users.
SCB also stated the following on the subject: