Bahamian regulators issued a press release Thursday. According to the statement, FTX froze the assets of Digital Markets and related parties. He described it as a “prudent action plan” to “protect assets and stabilize the company”. Meanwhile, California’s Department of Financial Protection and Innovation announced overnight that it is investigating FTX. Here are the details…
Regulators freeze FTX’s assets
The Bahamas Securities Commission froze FTX assets to “protect assets and stabilize the company.” He said it was a “prudent move”. The Bahamas Securities Commission has suspended the registration of FTX. He assigned assets to an attorney—Brian Sims, senior partner of Lennox Paton, as temporary liquidator. As we have reported as Kriptokoin.com, FTX is headquartered in the Bahamas. It is a separate entity from FTX US, the US arm of the exchange. The following statements were included in the statement of the institution:
The Commission is aware of public statements suggesting clients’ assets are misused, mismanaged and/or transferred to Alameda Research. To the Commission’s knowledge, such actions are contrary to normal management and potentially illegal without the consent of the client.
California FTX investigation begins
In other news, California’s Department of Financial Protection and Innovation (DFPI) announced that it is investigating FTX. The editor did not provide much detail in the press release. He said he was only “exploring the blatant failure of crypto-asset platform FTX.” The statement included the following statements:
The DFPI is the agency responsible for enforcing the state’s lending and banking laws, the recent California Consumer Financial Protection Act, and the state’s securities laws governing brokers, investment advisors, and commodities.
The organizer has asked those affected by the situation to contact him to file a complaint. According to a study in DFPI’s database, FTX is not a state-registered money platform. Meanwhile, California became the first state to announce it’s investigating the stock market after the failure earlier this week.
Other US states in the research process
Other states were already investigating FTX, including Texas before the collapse. According to experts, these institutions seem to expand the scope of their investigations. Federal agencies such as the US Department of Justice and the US Securities and Exchange Commission (SEC) are also investigating FTX after its collapse. He reaches out to companies like Binance to get information about the stock market.
Ryne Miller, general counsel of FTX USA, told employees to protect work-related documents. This often happens when companies are pending lawsuits or in response to subpoenas or other ongoing means of investigation. Prominent lawmakers such as Senator Sherrod Brown, who chairs the Senate Banking Committee, have also called on “financial watchdogs to investigate what led to FTX’s collapse.”
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