Embattled crypto exchange FTX has seen authorities freeze the assets of its subsidiary in the Bahamas.

In a statement, the Securities Commission of the Bahamas confirmed that it had suspended its business while also appointing a liquidator: “The powers of the directors of FDM have been suspended and no assets of FDM, client assets or trust assets held by FDM, can be transferred, assigned or otherwise dealt with, without the written approval of the provisional liquidator.”

FTX chief exec Sam Bankman-Fried is currently seeking to raise around $9.4 billion from investors following what was effectively a crypto version of a bank run where users withdrew over $6 billion in 72 hours earlier this week.

Bloomberg has also reported that Bankman-Fried is under investigation by the US Securities and Exchange Commission for potential securities law violations.

FTX had seemingly found a lifeline on Wednesday when rival exchange Binance agreed to acquire the world’s third-largest crypto exchange in order to “avoid a liquidity crunch”. However, Binance would pull out of the deal less than 24 hours later, citing mishandled customer funds and alleged US agency investigations.

Bankman-Fried faced additional ignominy on Thursday when Sequoia, one of FTX’s largest investors, said it had written down its $150m investment to nothing – effectively condemning the company as worthless.

With the company in a downward spiral and confidence in it and its native token FTT all but evaporated, it appears that FTX will require nothing short of a miracle if it is to recover.

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