Sunday, May 26, 2024

Bahamian Regulators Directed SBF to Move FTX’s Assets to Government Custody.

The Securities Commission of the Bahamas (SCB) ordered Sam Bankman-Fried to transfer FTX Digital Markets’ (FDM) all digital assets to a digital wallet owned by the SCB. The regulator exercised its power under the authority of a Supreme Court order to get the digital assets into a digital wallet controlled by the Commission for safekeeping.

A filing highlighted that SBF transferred the assets to the custody of the Bahamian government. In a recent interview with Vox, the former CEO of FTX said regulators just make everything worse. He claimed that they don’t protect customers at all.

This information surfaced when FTX in a motion in the U.S Bankruptcy Court in Delaware highlighted the SCB’s order. The fallen crypto exchange alleged that this puts in serious question a request by Bahamian regulators for recognition as liquidators in the bankruptcy. SBF and FTX co-founder Gary Wang outlined that Bahamas’ regulators instructed that certain post-petition transfers of Debtor assets be made by Wang and SBF and that such assets were custodied on Fire Blocks under the Bahamian government’s control.

The filing stated that debtors have credible evidence that the Bahamian government is responsible for directing unauthorized access to the Debtors’ systems to obtain digital assets of the Debtors. This took place after the commencement of the case.

SCB had said last week that urgent interim regulatory action was necessary to protect the interests of the clients and creditors of FDM.

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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