Bahamas regulator is temporarily holding $3.5B FTX assets

Hull Invest

The Bahamas Securities Commission said it was temporarily holding $3.5 billion worth of FTX assets with plans to distribute them to creditors and customers of bankrupt companies, according to Dec. 29. statement.

The financial regulator said it sought the direction of the Supreme Court of the Bahamas for all actions regarding FTX Digital Markets Ltd. By placing the FTX entity under the control of a court-appointed trustee, the first global He added that a lawsuit had been initiated.

On November 12, the Commission transferred all digital assets under the control or custody of FTXDM or its principals to wallets managed by SCB.

SCB wrote:

“The Commission has determined that there is a significant risk of imminent dissipation with respect to digital assets in custody or control of. [FTX] To the detriment of its customers and creditors. “

The regulator added that it has taken all necessary precautions to protect the assets in custody.

The commission said it would follow the direction of the Supreme Court of the Bahamas to release the assets to the creditors and customers who own the assets, or to the joint interim liquidators.

The regulator reiterated that it did not direct FTX to prioritize withdrawals from Bahamas-based customers, noting that neither SBF nor Gary Wang had access to the assets.

FTX’s new management and Bahamian authorities are at odds over the bankrupt company’s assets. The exchange’s administrators have alleged that the Bahamian government was responsible for unauthorized access to the bankrupt company’s systems after it filed for bankruptcy.

The Bahamas’ financial regulator countered that the claims were based on information obtained from unreliable sources.

Posted In: FTX, Bankruptcy

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