Today, the Securities Commission of The Bahamas took action to freeze the assets of FTX Digital Markets. The Commission also applied to the Supreme Court for the appointment of a provisional liquidator of FTX.

The commission said it’s aware that public statements suggesting 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.

An asset freeze was “the prudent course of action” to preserve assets and stabilize the company.  An attorney has been appointed provisional liquidator as the Bahamas securities regulator seeks to place the beleaguered crypto exchange into receivership.