Deltec Bank and Trust Limited, one of the largest financial institutions in The Bahamas, said in a statement on its website last week that it has no credit or asset exposure to collapsed cryptocurrency exchange FTX.
“In light of the recent events, Deltec Bank & Trust Limited would like to give an update on exposure to the solvency and bankruptcy issues at FTX and its related entities,” the statement said.
“Deltec Bank, fully licensed and regulated, offers traditional private and corporate banking services to clients globally in both innovative and traditional sectors.
“The bank has been operating for over 75 years, and is known for bringing personalized, expert partnership to its traditional banking services.
“FTX did not provide any services to or hold any assets for the bank. Deltec Bank does not hold or trade any digital assets for its own account or on behalf of its clients. Therefore, there is no credit or asset exposure by the bank to FTX.
“Deltec Bank has designed a business model that adheres to stringent regulations, can withstand the pressure of an ever-changing financial environment, and ensure the protection of our clients.
“With this, we have prioritized forward-thinking financial solutions through industry-leading services that are aligned with a rigorous risk framework and meet highly prudent standards.
Additionally, we are well capitalized and maintain a conservative balance sheet. These prudent practices ensure that there is no threat to the Bank’s sustainability, safety, and soundness.”
It is understood that FTX possibly held millions of dollars in a local bank or banks.
Last week the Securities Commission of The Bahamas (SCB) revealed that it had assumed control of FTX Digital Markets’ (FDM) assets as of November 12 and transferred all digital assets of the company to a digital wallet it controls “for safekeeping”.
The SCB said in a statement that it does not consider the locally registered FTX Digital Markets Ltd. part of the Chapter 11 bankruptcy proceedings filed by former FTX Chief Executive Officer Sam Bankman-Fried, just before he resigned from the company.
The SCB said it exercised its powers “as regulator acting under the authority of an order made by the Supreme Court of The Bahamas” when it transferred the funds to its own digital wallet.
Global speculation continues over how the SCB was able to move the money into its own wallet.