FTX digital asset freezing is done by the authority as a course to provide stability to the company and preserve its assets according to the statement by the Bahaman Securities Commission
FTX’s assets are frozen by the Bahamas security regulators and moved to appoint a liquidator for one of the entities. The authorities informed that they froze the assets of the local trading subsidiaries and related parties as the crypto exchange is near collapse, while the moves to raise around $8 billion to save FTX are on the go.
The crypto market is experiencing instability as the firm is facing troubles. The collapse of the company has wiped over $180 billion from the crypto market as the digital assets across are under severe selling pressures. The crypto market saw deep sell-offs adding to the instabilities as major crypto tokens were deep red on Thursday. The total crypto markets slipped below $850 billion markets, dropping another 5%, while the trading volumes in crypto remained solid at $190 billion as it dropped marginally during the previous days.
FTX digital asset freezing is done by the authority as a course to provide stability to the company and preserve its assets according to the statement by the Bahaman Securities Commission. The statement also said that the authority took action to suspend the registration and applied to the court and appointed Mr. Brian Simmons K.C as the provisional liquidator as an initial step in analyzing the status of the company to see if the company should be liquidated. The regulatory authority also stated the assets belonging to FTX could not be transferred without the approval of the provisional liquidator.
Sam Bankman-Fried, the Chief Executive Officer of the company announced the shutting down of Alameda research earlier and the employees at FTX US have tried to raise money but were warned that they might not be paid much longer. Binance, the cryptocurrency and blockchain provider giant recently planned to buy FTX in a crypto bailout as the market crumbled. Binance, however, bailed out from purchasing its arch-rival citing investigation and financial concerns. The announcement of Binance’s deal to take over the company and further abandonment of the deal made the firm’s future completely uncertain.
FTX announced on Thursday that the crypto exchange has reached an agreement with Tron to establish a special facility to allow holders of BTT, JST, SUN, TRX, and HT to swap assets from FTX 1:1 to external wallets. The CEO also stated that FTX US was 100% liquid and not financially affected by the turmoil happening in the firm.
FTX’s US firms might come to a halt within a few days and the users should close down any positions and withdrawals will remain open as per the directions on the website, reports Bloomberg. Sam Bankman-Fried saw his fortune reduced by 94% reaching $ 1 billion from $16 billion marking the biggest wealth collapse happening in a single day. He also pledged that current assets and any money raised would be paid back to customers.
The crypto exchange’s ability to raise rescue funds will determine its future as the cast of doubt looms over the exchange’s capability to survive without pushing in fresh capital. Traders have expressed their worries about their money being stuck on the frozen exchange and on losing their interest holdings.
The push to raise funds comes within a month after the firm was ready to begin the C funding round matching its $32 billion valuation from January. FTX digital markets are the Bahamian subsidiary of FTX Trading, and the unit assists in offering options, derivatives, and other services to its customers. The exchange is a separate entity from the FTX US and is based in the Bahamas.