Bahamas Securities Commission neither “authorized” nor condones FTX enabling local withdrawals

In a November 12 press release, the Bahamas Securities Commission (SCB) refuted statements made by FTX about resuming withdrawals in the Bahamas.

On November 11, Zane Tackett, former head of institutional sales at FTX, announced on Twitter that the exchange will enable withdrawals for customers in the Bahamas. In a statement, Tackett said withdrawals were made possible in compliance with regulatory authorities.

This led to a large number of FTX users trying to funnel their funds with the help of the Bahamians. Some even bribed FTX employees to change the country to the Bahamas to help withdraw funds.

However, SCB said the regulator had not “directed, approved or suggested” FTX to prioritize local withdrawals.

In fact, SCB’s press release states:

“The Commission further noted that such transactions could be characterized as invalid priority under the bankruptcy regime, resulting in recovery of funds from customers in the Bahamas. please.”

In other words, the regulator has clarified that withdrawals processed by FTX for customers in the Bahamas are considered void and may be reversed. The regulator firmly added that it would not “accept” preferential treatment for FTX customers.

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