CryptocurrencyInvestingBanksReal Estate

FTX’s assets are frozen in its home country after a stunning collapse

November 10, 2022, 11:36 PM UTC
Sam Bankman-Fried, founder and chief executive officer of FTX.
Jeenah Moon/Bloomberg via Getty Images

The Bahamas Securities Commission has frozen the assets of FTX Digital Markets “and related parties.”

An asset freeze was “the prudent course of action” to preserve assets and stabilize the company, the agency said Thursday in a statement. An attorney has been appointed 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 clients’ assets were mishandled, mismanaged and/or transferred to Alameda Research. Based on the commission’s information, any such actions would have been contrary to normal governance, without client consent and potentially unlawful,” it said.

FTX.com is based in the Bahamas and is a separate legal entity from FTX US. 

Representatives for FTX.com didn’t immediately respond to a request for comment.

Sign up for the Fortune Features email list so you don’t miss our biggest features, exclusive interviews, and investigations.