Bahamas controls FTX customer assets worth $3.5bn

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Late on Thursday, December 29, 2022, the Securities Commission of the Bahamas said FTX held more than $3.5 billion in client assets.

As stated therein Official Press Release, The Commission temporarily holds the digital assets until the Bahamas Supreme Court orders the funds to be returned to customers and creditors or the liquidator. The property was handed over to the commission on Nov. 12.

FTX is based in the Bahamas

From Bahamas headquarters, Sam Bankman-Fried and his Close friends conducted FTX. Alameda Research, on the other hand, FTX and more than 130 other affiliates A bankruptcy petition was filed in the United States.

Following filing Bankruptcy by FTX and its subsidiaries, the local FTX organization transferred the management of client assets it held to the Bahamian Financial Markets Regulator.

However, the regulator argues that at least $372 million worth of crypto was stolen during a cyber attack on the defunct exchange, leading to its eventual seizure. Assets of FTX customers For safety.

The Bahamas Securities Commission seized the assets

The Commission found a substantial risk of impending corruption with respect to digital assets in FTXDM’s custody or control, which could harm its customers and creditors. As a result, the commission sought and obtained a court injunction to protect digital assets while exercising its regulatory authority, the Bahamas regulator said.

The announcement further stated that these customer funds will no longer be accessible to Bankman-Fried or former CTO and co-founder of FTX, Gary Wang. FTX has already denied that the Bahamian Securities Commission instructed the bitcoin exchange to prioritize withdrawal requests from customers based in the Bahamas.

Medieval, Civil and FTX’s criminal investigations Operations have been launched by Bahamas authorities. Bankman-Fried was also detained on the island by Bahamas police after US authorities in the United States began prosecuting him for a crime.

SBF leaves the Bahamas

On Dec. 21, Bankman-Fried, founder of FTX, returned to America. On a bond of US$250 million, he was allowed to be released the next day and sent to live with his parents in California.

Christina Rolle, executive director of the Bahamas Securities Commission, said the commission is continuing to conduct a thorough and diligent investigation into the causes of FTX’s failure, and that all transferred assets will remain under its control.

The revelation came the same week that court records revealed that Sam Bankman-Fried used money from Alameda Research to buy Robinhood stock.

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