•The Bahamas Securities Commission announced that it is temporarily holding over $3.5 billion in assets from FTX customers.
•The assets were given to the commission on Nov.12, following FTX’s and its affiliates filing for bankruptcy in the U.S.
•The commission sought a court injunction to protect digital assets, in order to keep them from being detrimental to FTX customers and creditors.
The Bahamas Securities Commission recently announced that it is temporarily holding over $3.5 billion in assets from FTX customers. The assets were given to the commission on the 12th of November, following the filing for bankruptcy by FTX and its affiliates in the United States.
The Commission found a considerable risk of impending dissipation regarding the digital assets in FTXDM’s custody or control, which would be detrimental to its clients and creditors. As a result, the commission sought and received a court injunction to protect digital assets while exercising its regulatory authority. According to the official press release, the commission is temporarily holding the digital assets until the Bahamas Supreme Court orders it to return the funds to customers and creditors, or the liquidation administrator.
The assets were given to the commission on Nov.12, and the local FTX organization turned over management of the client assets it had been holding to the Bahamian financial market regulator. FTX was based in The Bahamas and was run by Sam Bankman-Fried and his close friends from a Bahamas headquarters.
The commission sought a court injunction to protect digital assets, in order to keep them from being detrimental to FTX customers and creditors. This follows the theft of at least $372 million worth of crypto during a cyberattack on the defunct exchange. The Bahamas Securities Commission confiscated assets in order to ensure that the funds were not dissipated, and to protect FTX customers and creditors.
The notification further stated that these customer monies are no longer accessible to Bankman-Fried or former CTO and co-founder of FTX Gary Wang. The Bahamas Securities Commission is holding the assets until the Bahamas Supreme Court orders it to return the funds to customers and creditors, or the liquidation administrator.
The Commission is working to ensure the safety of the FTX client assets, and to protect customers and creditors from any further risk. This is a reminder of the importance of the regulatory role of the Commission and its commitment to the security of investors and their funds.