In a November 12 press release, the Bahamas Securities Commission (SCB) refuted statements made by FTX about resuming withdrawals in the Bahamas.
Securities Commission addresses FTX statement on Bahamas withdrawal pic.twitter.com/OZKWwicSuN
— Bahamas Securities Commission (@SCBgov_bs) November 12, 2022
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.
1) Bahamian Headquarters Regulations and Regulators began facilitating the withdrawal of Bahamian funds. As such, you may have seen withdrawals processed by FTX recently due to regulatory compliance.
— Zane Tuckett (@tackettzane) November 10, 2022
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.