The Securities Fee of the Bahamas has revealed that it seized digital property price greater than $3.5 billion from the collapsed crypto change FTX. The regulator defined that the cryptocurrencies had been transferred to its wallets “for safekeeping” and “are being held by the Fee on a brief foundation.”
Bahamas Regulator Seizes FTX’s Cryptocurrencies
The Securities Fee of the Bahamas (SCB) stated Thursday that it has obtained a courtroom order to switch the digital property owned by, or beneath the custody or management of, FTX Digital Markets Ltd. (FTXDM) to its safe wallets. FTX Digital Markets is the Bahamian subsidiary of Sam Bankman-Fried’s FTX Buying and selling Ltd., which owned and operated the crypto buying and selling platform FTX.com.
The regulator wrote that on Nov. 12:
The Fee … took the motion of directing the switch of all digital property beneath the custody or management of FTXDM or its principals, valued at greater than US$3.5 billion, based mostly on market pricing on the time of switch, to digital wallets managed by the Fee, for safekeeping.
The Fee added that it’s exercising “its powers as regulator appearing beneath the authority of an order made by the Supreme Courtroom of the Bahamas.” The regulator confused that the method didn’t “contain the creation of any further tokens.”
The seized cryptocurrencies “are being held by the Fee on a brief foundation, till such time because the Bahamas Supreme Courtroom directs the Fee to ship them to the purchasers and collectors who personal them, or to the JPLs [Joint Provisional Liquidators] to be administered beneath guidelines governing the insolvency property for the advantage of the purchasers and collectors of FTXDM,” the regulator clarified.
The Securities Fee famous that the seizure was carried out “beneath a sealing order requested by the Fee and granted by the Supreme Courtroom of the Bahamas” on Nov. 16. The regulator reiterated that opposite to some media reviews:
The Fee didn’t in any approach direct, authorize, or counsel to FTXDM the prioritization of withdrawals for Bahamian purchasers.
FTX filed for chapter on Nov. 11 and an estimated a million clients and traders misplaced billions of {dollars}. The U.S. authorities and regulators have filed a number of fraud prices towards the crypto agency and Bankman-Fried. The previous FTX CEO was arrested within the Bahamas and extradited to the U.S. final week. He’s presently at his dad and mom’ home in Palo Alto, California, on a $250 million bond.
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