The Securities Commission of The Bahamas on Wednesday released a statement justifying its move to cease the customer assets of the local FTX entity, FTX Digital Markets Ltd (FDM). It came after several questions were raised against the action of the Bahamian regulator.

"It is unfortunate that in Chapter 11 filings, the new CEO of FTX Trading Ltd. misrepresented this timely action through the intemperate and inaccurate allegations lodged in the Transfer Motion," the regulator stated.

"It is also concerning that the Chapter 11 debtors chose to rely on the statements of individuals they have (in other filings) characterized as unreliable sources of information and potentially "seriously compromised."

The Bahamas financial market watchdog gained a court order on November 12 to make the collapsed cryptocurrency exchange transfer local customers' digital asset to government-controlled wallets for 'safekeeping.'

(By Arnab Shome)