Bahamian securities regulator ordered the transfer of FTX’s digital assets


Related articles

The Securities Fee of The Bahamas (SCB) stated it had ordered the switch of all digital property of FTX Digital Markets (FDM) to a digital pockets owned by the fee on Nov. 12. 

In a Nov. 17 assertion, the SCB stated it exercised its energy as a regulator appearing below the authority of a Supreme Courtroom order — transferring the property to a “digital pockets managed by the Fee, for safekeeping.”

SCB justified final week’s transfer by stating that “pressing interim regulatory motion was vital to guard the pursuits of purchasers and collectors of FDM.”

The newest revelation may shed some mild on sure actions of funds detected final week. 

On Nov. 11, the crypto community flagged a number of suspicious transactions in wallets tied to FTX and FTX.US, with analysts reporting round $663 million drained. $477 million had been suspected to be stolen whereas the rest was believed to have been moved to safe storage by FTX themselves.

The SCB assertion nevertheless didn’t make any point out of how a lot of FDM’s digital property had been moved because of their order.

Cointelegraph has reached out to SCB for readability however has not acquired a response by the point of publication. 

The fee’s order would have been made solely two days after the fee froze FDM’s property on Nov. 10, suspended FTX’s registration within the nation, and stripped the FTX administrators of their energy.

On the time, it additionally said that FDM’s property may solely be moved by acquiring the approval of a provisional liquidator appointed by the Supreme Courtroom.

Associated: FTX reportedly hacked as officials flag abnormal wallet activity

The FTX chapter drama has continued to unfold during the last week.

On Nov. 15, FDM filed for Chapter 15 chapter safety in a New York-based courtroom with a purpose to search U.S. recognition of the Bahamian liquidation proceedings.

Brian Simms, the court-appointed provisional liquidator overseeing the bankruptcy proceedings of FTX Digital Markets within the Bahamas argued within the submitting that FDM wasn’t authorized to file for Chapter 11 in the United States, and rejected the validity of the submitting.

On Nov. 17, an emergency motion by FTX Buying and selling Restricted argued that each the Chapter 11 case and all proceedings associated to Chapter 15 filings ought to happen within the Delaware-based U.S. Chapter Courtroom with a purpose to “finish the chaos and to make sure that property will be secured and marshalled in an orderly course of.”

The identical submitting additionally claimed they’ve “credible proof that the Bahamian authorities is accountable for directing unauthorized entry to the Debtors’ methods for the aim of acquiring digital property of the Debtors—that happened after the graduation of those instances.”