Regulators in the Bahamas Are Holding $3.5 Billion in FTX Customer Assets
Based on a press release issued by the Securities Commission of the Bahamas late on Thursday, the SCB has acquired control of FTX deposits worth more than $3.5 billion as of Nov. 12.
Around $372 million value of assets were taken from the exchange immediately after FTX declared bankruptcy by an unidentified individual who is believed to be an outside hacker. The Commission stated in its statement that it “determined that there was a significant risk of imminent dissipation as to the digital assets under the custody or control of [FTX] to the detriment of its customers and creditors” in light of news and social networks of a cyberattack on FTX and potential looting of FTX-seized wallets by former employees.
According to the statement, items will be kept in reserve until the Bahamas Supreme Court orders the Commission to return them to the clients and creditors who possess them.
According to the Commission, the $3.5 billion in assets that were swapped were no longer available to FTX founders Sam Bankman-Fried and Gary Wang.
The Commission emphasised in the statement that it had not given FTX any instructions to give Bahamas-based clients’ withdrawals top priority.
On November 11, FTX, a cryptocurrency exchange, filed for Chapter 11 bankruptcy safety in the United States when it came to light that Alameda Research, an allied trading business, was mostly backed by FTT tokens that FTX produced out of thin air, according to a CoinDesk investigation.
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Source: www.pipsafe.com – Regulators in the Bahamas
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