FTX’s Fight With Bahamas Puts Customers’ Crypto in Limbo

The collapse of FTX has put its new management at odds with regulators in the Bahamas over who should control billions in sparsely documented cash and cryptocurrency assets that are presently out of customers’ reach.

The Securities Commission of the Bahamas last week installed liquidators at the exchange’s Bahamas-based unit FTX Digital Markets Ltd. to recover its assets and deposits from other FTX entities after they ruled it was insolvent. Bahamas regulators said on Thursday they had swept the local subsidiary’s assets to a government-controlled wallet “for safekeeping” and to protect the interests of clients and creditors.