Bahamas Regulators Seize Crypto Assets from FTX Worth $3.5 Billion for ‘Safekeeping’
The Securities Commission of the Bahamas claims that it has moved $3.5 billion from FTX’s Bahamian subsidiary, FTX Digital Markets, into its own digital wallets for “safekeeping” while former FTX CEO Sam Bankman-Fried awaits trial in the United States.
CNBC reports that the Securities Commission of the Bahamas recently announced that it has seized $3.5 billion worth of cryptocurrency from failed crypto exchange FTX. In a statement released on Thursday, the watchdog confirmed that it had seized the cryptocurrency from FTX’s Bahamian subsidiary, FTX Digital Markets.
The seized funds were transferred into the Securities Commission of the Bahamas’ own digital wallets “for safekeeping.” The regulatory body previously announced that it has seized an undisclosed amount of digital assets belonging to FTX.
According to the commission, the seized funds had a value of over $3.5 billion, based on market prices at the time of their transfer. The funds were transferred to the digital wallets of the Securities Commission on November 12, just one day after FTX filed for Chapter 11 bankruptcy protection in the United States.
The funds are reportedly being held temporarily until further direction is given by the Bahamas’ Supreme Court regarding their distribution to customers and creditors or to the liquidators of the insolvent estate.
According to the regulator, the decision to seize the funds was made following the receipt of information from Sam Bankman-Fried, the co-founder of FTX, regarding cyberattacks on the systems of the company’s Bahamian subsidiary. Bankman-Fried has since been disgraced and extradited to the U.S. to face trial.
The regulator claimed that there was “significant risk of imminent dissipation” of the assets if left in the control of FTX Digital Markets. Shortly after FTX filed for bankruptcy, the exchange was targeted in a suspected hack that saw the firm lose $477 million