FirstFT: Bahamas freezes FTX assets

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The Bahamas securities regulator has frozen the assets of part of Sam Bankman-Fried’s crypto empire and moved to appoint a liquidator for one of his entities, as the FTX founder races to raise as much as $8bn to save his company.

The Bahamas Securities Commission took the action yesterday against FTX Digital Markets, the Bahamian subsidiary of FTX. No assets belonging to the business can be transferred without the approval of a provisional liquidator, the regulator said. FTX moved to the Bahamas in 2021 from Hong Kong, where it was launched.

“The commission is aware of public statements suggesting that clients’ assets were mishandled, mismanaged and/or transferred to Alameda Research”

Bankman-Fried was seeking to raise as much as $8bn to save his crypto company yesterday as more of his former backers wrote down their investments in the FTX exchange.

The crisis prompted contagion in the crypto sector as BlockFi, a digital asset lending platform, paused client withdrawals.

Bankman-Fried was once crypto’s de facto spokesperson in Washington, testifying before powerful congressional committees, publicly supporting legislation and donating to political campaigns. Now, his downfall could make things harder for an industry that for years has raised the ire of policymakers.

Thank you to everyone who took part in yesterday’s poll. Among respondents, 86 per cent said Binance was right to abandon its deal to rescue FTX. FirstFT Europe/Africa will be back in your inbox on Monday. Have a great weekend — Jennifer

1. US stocks’ best day in over 2 years Wall Street roared ahead yesterday in its strongest day in more than two years. Investors were emboldened by data that showed a decelerating increase in consumer prices and set the stage for a slower pace of interest rate rises by the Federal Reserve, which a growing number of central bank officials has supported.

2. Jeremy Hunt plans post-election ‘Austerity 2.0’ The chancellor is looking to fill about half of the UK’s £55bn budgetary hole through a big tightening of government spending after the next election, a move that would impose fresh austerity on public services.

3. Apple investors seek votes Shareholders are looking for ballots at the iPhone maker’s annual meeting next year on proposals regarding the company’s stance towards unionising employees, working from home and human rights in China.

4. Rishi Sunak and Micheál Martin strike positive note The UK prime minister has said he is “confident” that a “practical resolution” can be found on the Northern Ireland protocol after an upbeat meeting with his Irish counterpart. The dispute has raised concerns about a trade war with the EU.

5. Elon Musk wrestles with Twitter’s finances The social media platform suffered another exodus of executives yesterday, while its new billionaire owner warned that bankruptcy was a possibility. Among the departing employees was the head of trust and safety, Yoel Roth, according to two people familiar with the situation.

Have you kept up with the news this week? Take our quiz.

The days ahead

UK GDP The first estimate for third-quarter gross domestic product is expected to show a contraction of about 0.2 per cent quarter on quarter, following the Bank of England’s gloomy projections last Thursday that Britain is entering its longest recession since the second world war. The Office for National Statistics releases figures on September trade and industrial production today, too.

  • Other economic news: The European Commission releases its autumn economic forecast as the bloc faces soaring inflation. The continent’s largest economy, Germany, also publishes its October consumer price index.

Paris Peace Forum The two-day annual conference begins in the French capital, where world leaders are set discuss common threats including Russia’s invasion of Ukraine.

Migrant ship in France A charity vessel carrying 231 migrants rescued in the Mediterranean will be permitted to dock in the port of Toulon after Italy’s new rightwing government refused to allow the ship into its waters.

National holidays Armistice Day, or Remembrance Day, commemorates the ending of the first world war in various Commonwealth countries. Poland marks its 1918 independence with a national holiday. The US also honours military veterans with a federal holiday known as Veterans Day.

Elections Bahrainis will head to the polls tomorrow to select 40 members of its Council of Representatives, in parliamentary elections that human rights groups have warned take place in an environment of political repression. Slovenia also holds the second-round presidential ballot on Sunday, with former foreign minister Anze Logar running against Natasa Pirc Musar, a political independent, for the top position. (FT, DW)

What else we’re reading

What happens next to Britain’s Ukrainian refugees? Financial Times columnist Camilla Cavendish talks to hosts and guests whose lives have been changed by the government’s Homes for Ukraine scheme to take in refugees — and finds clues to future immigration policy.

“On one Saturday, there were 70 new children with confused mothers. We couldn’t say no” — Inna Hryhorovych, St Mary’s Ukrainian School

COP27 gives Egypt’s human rights activists global platform As the UN climate conference is underway in Sharm el-Sheikh, Egypt’s human rights record — in particular the plight of political dissident Alaa Abdel Fattah — has become the focus of intense attention, at times overshadowing the official business of the conference.

Ukraine hopes US military aid keeps flowing It was not only Democrats who were relieved that the Republican “red wave” failed to materialise in the US midterm elections. Kyiv has hoped that a better than expected performance by Joe Biden’s party would ensure continued support in its war with Russia. But they are not in the clear yet.

Managing the polycrisis era for executive pay Senior pay packets have recovered nicely from the bout of pandemic-induced austerity. Now it is time to show if Covid-era notions of solidarity and alignment were genuine and executives are willing to share workers’ “pain”, writes Helen Thomas.

The ethical case for watching this World Cup Many human rights activists, NGOs and trade unions believe the Qatar-hosted tournament can be used to shine a light on myriad abuses, including the exploitation of labourers who built the stadiums. But Simon Kuper argues that not boycotting may do more good than not.

Fashion

Showstopping gowns, beguiling frocks and principal-boy breeches. Whatever your mood, here’s how to make an entrance with your wardrobe this season.

© James Brodribb

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