1 year ago
The Securities Commission of the Bahamas has revealed that it seized integer assets worthy much than $3.5 cardinal from the collapsed crypto speech FTX. The regulator explained that the cryptocurrencies were transferred to its wallets “for safekeeping” and “are being held by the Commission connected a impermanent basis.”
Bahamas Regulator Seizes FTX’s Cryptocurrencies
The Securities Commission of the Bahamas (SCB) said Thursday that it has obtained a tribunal bid to transportation the integer assets owned by, oregon nether the custody oregon power of, FTX Digital Markets Ltd. (FTXDM) to its unafraid wallets. FTX Digital Markets is the Bahamian subsidiary of Sam Bankman-Fried’s FTX Trading Ltd., which owned and operated the crypto trading level FTX.com.
The regulator wrote that connected Nov. 12:
The Commission … took the enactment of directing the transportation of each integer assets nether the custody oregon power of FTXDM oregon its principals, valued astatine much than US$3.5 billion, based connected marketplace pricing astatine the clip of transfer, to integer wallets controlled by the Commission, for safekeeping.
The Commission added that it is exercising “its powers arsenic regulator acting nether the authorization of an bid made by the Supreme Court of the Bahamas.” The regulator stressed that the process did not “involve the instauration of immoderate further tokens.”
The seized cryptocurrencies “are being held by the Commission connected a impermanent basis, until specified clip arsenic the Bahamas Supreme Court directs the Commission to present them to the customers and creditors who ain them, oregon to the JPLs [Joint Provisional Liquidators] to beryllium administered nether rules governing the insolvency property for the payment of the customers and creditors of FTXDM,” the regulator clarified.
The Securities Commission noted that the seizure was conducted “under a sealing bid requested by the Commission and granted by the Supreme Court of the Bahamas” connected Nov. 16. The regulator reiterated that contrary to immoderate media reports:
The Commission did not successful immoderate mode direct, authorize, oregon suggest to FTXDM the prioritization of withdrawals for Bahamian clients.
FTX filed for bankruptcy connected Nov. 11 and an estimated 1 cardinal customers and investors mislaid billions of dollars. The U.S. authorities and regulators person filed aggregate fraud charges against the crypto steadfast and Bankman-Fried. The erstwhile FTX CEO was arrested successful the Bahamas and extradited to the U.S. past week. He is presently astatine his parents’ location successful Palo Alto, California, connected a $250 cardinal bond.
What bash you deliberation astir the Bahamian regulator seizing FTX’s crypto assets for safekeeping? Let america cognize successful the comments conception below.
Kevin Helms
A pupil of Austrian Economics, Kevin recovered Bitcoin successful 2011 and has been an evangelist ever since. His interests prevarication successful Bitcoin security, open-source systems, web effects and the intersection betwixt economics and cryptography.
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