Friday, June 21, 2024

Bahamas Securities Regulator Demand FTX Crypto Transferred to Government Wallets.

The Bahamas Securities Commission revealed on Thursday that it had mandated the transfer of FTX’s cryptocurrency holdings to government-controlled wallets on the preceding Saturday.

The commission stated in a press release that it issued the directive in accordance with the law, which enables it to act if necessary to protect clients or their funds.

In accordance with a Supreme Court of The Bahamas order, the Securities Commission of The Bahamas (the “Commission”) “took the action of directing the transfer of all digital assets of FTX Digital Markets Ltd. (the “FDM”) to a digital wallet controlled by the Commission, for safekeeping,” according to the statement. “Emergency interim regulatory action was required to safeguard the interests of FDM’s customers and creditors.”

It’s uncertain why, 5 days after placing the order, the commission announced it. Also, unknown are the possibility of these transfers as well as their timing. Christina Rolle, the executive director of SCB, did not pick up the phone.

In a disorganized bankruptcy filing on Friday, Nov. 11, FTX inadvertently listed several businesses that are not a part of the FTX umbrella as also filing for bankruptcy. The company looked to have been hacked on the evening of November 11 and into the early hours of November 12, when hundreds of millions of dollars worth of cryptocurrency began to flow out of FTX’s wallets. A few of these transactions were related to foul remarks made about the previous CEO of FTX, Sam Bankman-Fried.

In a disorganized bankruptcy proceeding on Friday, Nov. 11, FTX inadvertently listed various businesses that are not a part of the FTX umbrella as also filing for bankruptcy. The company looked to have been hacked on the evening of November 11 and into the early hours of November 12, when hundreds of millions of dollars worth of cryptocurrency began to flow out of FTX’s wallets. A few of these transactions were related to foul remarks made about the previous CEO of FTX, Sam Bankman-Fried.

The announcement possibly alludes to a dispute about jurisdiction between the United States and the Bahamas, where FTX has its headquarters. It is not the Commission’s understanding that FDM is a party to the US Chapter 11 Bankruptcy proceedings, according to SCB’s statement.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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