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

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

FTX enabled withdrawals for Bahamian clients on Nov. 11 citing compliance with regulators, but the SCB contradicted the exchange's claims.

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

Cover art/illustration via CryptoSlate

In a press release on Nov. 12, the Securities Commission of The Bahamas (SCB) contradicted the statement published by FTX about resuming withdrawals in The Bahamas.

On Nov. 11, the former head of institutional sales at FTX, Zane Tackett, announced on Twitter that the exchange would allow withdrawals for Bahamanian clients. In the statement, Tackett said that the withdrawals were enabled in compliance with regulators.

This led to a large number of FTX users trying to funnel funds through the help of Bahamians. Some even offered bribes to FTX employees to change their country to The Bahamas and help withdraw funds.

However, the SCB said that the regulator neither “directed, authorized, or suggested” FTX to prioritize local withdrawals.

In fact, the SCB press release stated:

“The Committee further notes that such transactions may be characterized as voidable preferences under the insolvency regime and consequently result in clawing back funds from Bahamian customers.”

In other words, the regulator made it clear that the withdrawals processed by FTX for Bahamian clients may be considered void and, therefore, reversed. The regulator firmly added that it does not “condone” the preferential treatment of any FTX customers.

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