Bahamas Securities Commission neither “authorized” nor condones FTX enabling local withdrawals

In a press release issued on November 12, the Securities Commission of The Bahamas (SCB) refuted FTX's announcement about restarting withdrawals in The Bahamas.

Zane Tackett, the former head of institutional sales at FTX, declared on Twitter on November 11 that the exchange would allow withdrawals for Bahamian clients. Tackett stated in the statement that the withdrawals were permitted in accordance with regulations.

As a result, a huge number of FTX users attempted to route payments through Bahamians. Some even offered bribes to FTX personnel in order to shift their country to The Bahamas and assist in the withdrawal of monies.

The SCB, on the other hand, stated that the regulator had not “ordered, permitted, or urged” that FTX prioritize local withdrawals.

In reality, according to the SCB press release:

“The Committee also observes that such transactions may be classified as voidable preferences under the insolvency framework, resulting in the clawback of monies from Bahamian clients.”

In other words, the regulator said unequivocally that FTX withdrawals for Bahamian clients may be deemed void and hence overturned. The regulator also stated unequivocally that it does not “condone” preferential treatment of any FTX consumers.