Latest from FTX: Bahamas Freezes FTX.com Assets, Appoints Liquidator

(Bloomberg) — Officials in the Bahamas, where FTX.com is based, have frozen the assets of FTX Digital Markets while appointing a liquidator. The freeze is a “reasonable action” to preserve assets and stabilize the company, the Bahamas Securities Commission said in a statement Thursday.

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Earlier, FTX.com founder Sam Bankman-Fried said he was shutting down Alameda Research, the trading house at the center of speculation that his crypto exchange mismanaged client funds. Trading may be suspended after a few days on FTX US, which is a separate entity from FTX.com.

The crisis engulfing FTX grew this week, with rival Binance Holdings Ltd. agreed to a hastily arranged rescue and then withdrew a day later. US authorities are now investigating FTX’s dealings, Bloomberg News reported, and Bankman-Fried has warned of bankruptcy if it cannot raise capital to cover a shortfall of as much as $8 billion.

Key stories and developments:

  • At FTX.US, officials are trying to sell assets with SBF

  • In Sam Bankman-Fried, venture capitalists saw the founder of a model (2)

  • Retail FTX investors fear Wipeout, shaking their faith in crypto

For crypto market prices: CRYP; for top crypto news: TOP CRYPTOS

(All times are US Eastern Standard)

Bahamas seeks to put FTX.com into receivership (17:50)

The Bahamas Securities Commission has frozen the assets of FTX Digital Markets “and related entities.” The asset freeze is the “reasonable course of action” to preserve assets and stabilize the company, the agency said in a statement Thursday.

A lawyer has been appointed as a provisional liquidator as the Bahamas’ securities regulator seeks to place the beleaguered crypto exchange into receivership.

“The Commission is aware of public statements suggesting that client assets were mismanaged and/or transferred to Alameda Research. Based on the committee’s information, any such actions would be contrary to normal management, without the consent of the client and potentially illegal,” the statement said.

Ontario teachers say investment in FTX businesses was $95 million (3:40 am)

The investments represent less than 0.05 per cent of the Ontario Teachers’ Pension Plan’s assets, according to a statement.

Junior staff try to sell assets with Bankman-Fried Away (14:20)

Officials at the US-based crypto exchange are in talks to sell parts of the business, including some assets that Bankman-Fried amassed in a wide-ranging acquisition spree in the industry, according to two people with direct knowledge of the matter, who spoke on condition of anonymity because the talks were private. .

FTX Implosion Rocks Retail Investors (14:15)

The collapse of Bankman-Fried’s FTX.com is the worst-case scenario for retailers who have invested their savings in crypto.

The White House is monitoring crypto markets (13:52)

The Biden administration is aware of recent developments surrounding cryptocurrencies and will “continue to monitor the situation,” White House press secretary Karin Jean-Pierre told reporters Thursday.

Jean-Pierre said the White House believes cryptocurrency markets require “appropriate oversight,” but declined to comment on specific steps regulators could or should take.

“The latest news further underscores these concerns and underscores why sensible regulation of cryptocurrencies is indeed needed,” Jean-Pierre said at his daily press briefing.

FTX US says trading may be halted in a few days (1:31pm)

FTX US, the American entity of Bankman-Fried’s crypto exchange, said that trading on it could be suspended in a few days. FTX.com and FTX US are separate entities with separate management staff, technical infrastructure and licensing, but have similar owners and investors, representatives of the companies have said in the past.

FTX reaches agreement with Tron to allow users to withdraw some tokens (13:10)

FTX said it has reached an agreement with Justin Sun’s Tron that will allow users to withdraw some tokens from the troubled exchange.

Japan Takes Action Against Local FTX Unit; Freezes Exchange Activity (12:52 PM)

The Japanese government ordered FTX.com’s local subsidiary to halt some of its operations, saying it lacked a structure to properly offer cryptocurrency exchange services to users.

Crypto entrepreneur Sun’s token jumps after offer to help FTX (12:37 PM)

Tron founder Justin Sun said on Twitter early Thursday that his firm is working with FTX to address the liquidity crisis, without providing specific details. The price of the native token used on the Tron blockchain has soared on the embattled platform.

FTX resumes withdrawals after two-day hiatus (12:28 PM)

FTX.com has resumed withdrawals on the platform, according to blockchain data, after suspending such activities on Tuesday. Nansen and Kaiko, another blockchain data firm, confirmed the resumed activities. FTX processed $8 million worth of withdrawals in one hour on Thursday, Nansen said.

Bankman-Fried Closes Trading Firm (11:40am)

Bankman-Fried is shutting down Alameda Research, the trading house at the heart of his digital asset empire, as he seeks final funding to save his ailing crypto exchange FTX.

–With help from Yueqi Yang, Muyao Shen, Jordan Fabian, Takashi Nakamichi, Nao Sano, Philip Lagerkranser, and Derek Decloet.

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