Bahamas Securities Commission clearly On Nov. 18, it instructed FTX to transfer digital assets under its custody to the commission’s wallet on Nov. 12.
The Securities Commission of the Bahamas will assume asset management of FTX Digital Markets Ltd. pic.twitter.com/IzW4PGZSJm
— Bahamas Securities Commission (@SCBgov_bs) November 18, 2022
According to the regulator, the directive was intended to “protect” assets and was “necessary to protect the interests of customers and creditors” of the bankrupt exchange.
FTX court filing reveals company sent assets to Bahamian authorities
Court November 17 filing FTX has revealed that it has recorded and verified textual evidence that regulators in the Bahamas directed unauthorized access and withdrawals to bankrupt exchanges.
Former CEO Sam Bankman-Fried and CTO Gary Wang were involved in the Nov. 13 event, according to filings. The exchange said the assets were “stored in fireblocks under the control of the Bahamian government.”
“Thus, the debtor has credible evidence that the Bahamian government is responsible for directing unauthorized access to the debtor’s system for the purpose of obtaining the debtor’s digital assets. It was done after the start.”
FTX also contested the complaint filed by the Bahamas government-appointed liquidator in New York. The liquidators had filed Chapter 15 with the New York courts, seeking to grant the courts control over the proceedings in the Bahamas.
According to FTX, Chapter 15 filings should be transferred from New York courts to Delaware to avoid “potentially conflicting opinions, duplication of efforts, and unnecessary costs.”
FTX also argued that the Bahamas-appointed liquidator did not mention its intention to file a Chapter 15 lawsuit in a new U.S. court.
Bahamian regulators have previously said they have not directed FTX to prioritize the withdrawal of Bahamian assets.
The FTX hacker was reportedly the 35th largest Ethereum holder. The hacker’s address holds a total of 228,523 ETH worth $284.82 million. Hackers have also been trading and moving tokens since earlier this week.
