The Securities Regulator of the Bahamas orders the transfer of FTX’s digital assets

The Securities Commission of the Bahamas (SCB) said on Nov. 12 that it had ordered the transfer of all digital assets of FTX Digital Markets (FDM) to a digital wallet owned by the Commission.

In a Nov. 17 filing, the SCB said it exercised its regulatory power by acting under the authority of a Supreme Court order, requesting the transfer of assets into a “Commission-controlled digital wallet for safekeeping.” “.

The Securities Commission of The Bahamas takes control of the assets of FTX Digital Markets Ltd.

The SCB justified last week’s decision by saying it was “urgent interim regulatory action is needed to protect the interests of FDM’s customers and creditors.”

The latest revelation could shed some light on some fund movements seen last week.

On November 11, the crypto community reported a series of suspicious transactions in FTX and FTX.US-related wallets, with analysts reporting around 663 million dollars stolen. $477 million is suspected to have been stolen, with the remainder believed to have been moved into storage by FTX itself.

The SCB statement, however, does not mention the extent of FDM’s digital assets moved as a result of the order.

Cointelegraph has reached out to the SCB for further clarification, but as of this writing, we have not received a response.

The commission’s order was reportedly issued just two days after the November 10 freeze of FDM’s assets, accompanied by the suspension of FTX’s registration in the country and stripping FTX directors of their authority.

At the time, the Commission also said that FDM’s assets could only be moved after obtaining approval from a Supreme Court-appointed interim liquidator.

On November 15th, FDM presented filing for bankruptcy protection under Chapter 15 in a New York court in order to obtain United States recognition of the Bahamian liquidation proceedings.

Brian Simms, the temporary liquidator appointed by the court overseeing the bankruptcy proceedings of FTX Digital Markets in the Bahamas, argued that FDM was not authorized to file for Chapter 11 in the United States, thus rejecting the validity of the application.

On November 17, FTX Trading Limited filed an emergency motion arguing that both the Chapter 11 case and all proceedings relating to Chapter 15 claims should be held in the US Bankruptcy Court located in Delaware, in order to “end the chaos and ensure that assets can be secured and collected in an orderly process”.

In the same document it is also stated to have “credible evidence that the government of the Bahamas is responsible for directing unauthorized access to Debtors’ systems for the purpose of obtaining Debtors’ digital assets, which access occurred at the outset of these cases.”



The Securities Regulator of the Bahamas orders the transfer of FTX’s digital assets