In line with a report by Reuters, the previous CEO of the bankrupt cryptocurrency trade FTX, Sam Bankman-Fried, continues to be within the Bahamas. Bankman-Fried has denied earlier experiences that he had jetted to South America amid the monetary woes dealing with the previous trade big.

FTX’s former CEO is within the Bahamas

Bankman-Fried despatched a message to Reuters denying earlier experiences that he had fled the Bahamas. The event got here a day after FTX filed for Chapter 11 chapter safety in the USA.

Earlier than its demise, FTX was one of many largest cryptocurrency exchanges. The demise of this trade has dampened belief in cryptocurrency and exchanges. The demise of FTX follows the autumn of a number of crypto companies this yr, together with Celsius, Three Arrows Capital, and Voyager. Clients are left questioning whether or not they’ll obtain their funds again.

A large hack on the trade adopted the FTX chapter submitting that was made on Friday. A report by CoinDesk estimates that greater than $600 million had been stolen from the trade as mysterious transactions have been seen on the blockchain.

The FTX normal counsel, Ryne Miller, admitted to the mysterious outflow of funds in a tweet. He later added that FTX had reached out to legislation enforcement and moved the remaining property on the trade to chilly storage.

A day earlier than Bankman-Fried filed for FTX chapter, he had issued a collection of apologies on Twitter to his followers. He had promised prospects that he would conduct a increase and do all the pieces to make sure that prospects and traders have been protected.

Nevertheless, FTX failed to boost the extra funds. Binance, which had earlier supplied to amass FTX, pulled out of the deal, saying that the problems dealing with the troubled trade have been past Binance’s management.

It’s estimated that FTX wants almost $10 billion in rescue funds. The chapter submitting additionally consists of Alameda and FTX US. Shortly earlier than the chapter submitting, Bankman-Fried had alleged that FTX US was 100% liquid.

The Bahamas securities regulator didn’t authorize native withdrawals

The drama surrounding the FTX trade continued over the weekend because the Securities Fee of the Bahamas issued an announcement on Twitter saying that it had not ordered the trade to course of native withdrawals, elevating questions on whether or not FTX staff have been utilizing the chance to take their cash out of the platform.

Securities Fee Addresses FTX Assertion on Bahamian Withdrawals pic.twitter.com/OZKWwicSuN

— Securities Fee of The Bahamas (@SCBgov_bs) November 12, 2022

The monetary regulator refuted an earlier tweet by FTX, saying that it was required below Bahamian legal guidelines to permit Bahamian customers to withdraw funds from the trade. In line with the Securities Fee of the Bahamas, it didn’t condone the preferential therapy of any investor.

The regulator added,

The fee additional notes that such transactions could also be characterised as voidable preferences below the insolvency regime and consequently end in clawing again funds from Bahamian prospects.

Whereas Bahamas has already frozen FTX property, some customers had withdrawn round $7 million value of various cryptocurrencies. Some customers outdoors the Bahamas additionally appeared to hunt the assistance of Bahamas locals to withdraw their funds from the trade.

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