FTX: Bahamas Freezes Digital Markets Assets, Names Liquidators – Bloomberg

The Securities Commission of the Bahamas, where US-based cryptocurrency trading company FTX is based, has frozen the assets of FTX Digital Markets and appointed a liquidator on the 10th. The Securities Commission said in a statement that the asset freeze was “a prudent series of steps ” to protect assets and stabilize the company.

Earlier, FTX founder Sam Bankman-Fried announced that he would shut down trading firm Alameda Research, amid speculation about FTX’s mishandling of customer funds. FTX US, a domestic business, could see a trading halt in the coming days.

The crisis that engulfed FTX has snowballed this week. Rival Binance Holdings quickly pulled together its FTX rescue policy the next day. US regulators are investigating FTX trading, Bloomberg News reports, and Bankman-Fried has warned it will go bankrupt if it fails to address a funding shortfall of up to $8 billion. .

Bankman-Fried is looking to put together a $9.4 billion FTX bailout package, Reuters reported on condition of anonymity, according to a person with direct knowledge of the matter.

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Bloomberg’s Sonali Basak explains FTX’s business crisis

Source: Bloomberg

Big trends around FTX

The latest major developments around FTX are as follows.

Bahamian Authorities Freeze FTX Digital Markets Assets

The Bahamas Securities Commission has frozen the assets of FTX Digital Markets and “multiple related entities.” His aim is to bring the company under control, and a solicitor has been appointed as a temporary liquidator.

FTX is based in the Bahamas and is a separate legal entity from its domestic business, FTX US. A representative for FTX did not immediately respond to a request for comment.

Bahamian Securities Regulator Freezes FTX Digital Markets Assets

UPDATE 1-Reuters

Bankman-Fried received $1 billion from Tron founder Justin Sun, $1 billion from cryptocurrency exchange OKX, $1 billion from Tether and an investment fund group, Reuters reported, citing people familiar with the matter. The rest will come from other investors, including Daniel Loeb’s hedge fund company Third Point, which FTX is talking to, according to people familiar with the matter.

FTX, Sun, OKX and Third Point declined to comment when contacted by Reuters. Loeb said on Twitter that reports of Third Point’s involvement in the FTX bailout negotiations were “fake news.”

The Ontario Teachers’ Pension Fund is investing $95 million in FTX

Ontario Teachers’ Pension FundIn a statement, it said its investment in FTX was $95 million, or less than 0.05% of the fund’s assets.

Employees who want to sell assets

FTX employees are in discussions to sell some of their businesses, including assets acquired from Bankman-Fried through an acquisition. Two people with direct knowledge of the matter spoke on condition of anonymity, saying the discussions were confidential. The employees are looking to sell assets such as a stock-clearing platform and the naming rights to an athletics facility in Miami, according to one of the people familiar with the matter, in some discussions Bankman-Fried is not involved oh, he said. one officer.

The White House is monitoring the cryptocurrency market

White House press secretary Jean-Pierre told reporters Wednesday that the Biden administration was aware of recent developments in crypto and would “continue to monitor the situation.”

Jean-Pierre said the White House believes crypto markets need “appropriate oversight,” but declined to comment on the specifics of what regulators could or should do in rice.

FTX business in the US could stop trading in days

FTX US, the US entity of FTX, said it may suspend trading in the coming days. A company representative previously explained that FTX.com and FTX US are separate entities with different management teams, technology infrastructure and licensing, but with the same owners and investors.

US FTX business may suspend trading within days – advises closing positions

FTX agrees with TRON for users to partially withdraw a token

FTX is working with Tron, led by Justin Sun, to allow users to withdraw some tokens from FTX.announce that an agreement has been reached.

Japan’s FTX Ordered to Suspend Operations and Enhance Domestic Ownership of Assets – Kanto Local Finance Bureau

The Kanto Local Finance Bureau announced on the 10th that it is issuing a business suspension order and a business improvement order to FTX Japan, a Japanese subsidiary of FTX, for not having a system in place to properly carry out the crypto asset exchange business.

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