The Securities Commission of The Bahamas Confirms They Seized Digital Assets of FTX’s Bahamas Unit After Bankruptcy Declared in US

The regulator said on Thursday it had ordered the transfer of all assets of FTX Digital Markets Ltd to a digital wallet it controlled for safekeeping.”Urgent interim regulatory action was necessary to protect the interests of clients and creditors of FDM,” the commission said in a statement.FTX was caught off-guard when assets were transferred on November 13 and initially believed that it had been hacked, according to its court filing.While investigating the hack, FTX learned that Bankman-Fried and FTX co-founder Gary Wang made “unauthorized” transfers at the direction of the Bahamian government while “effectively in the custody of Bahamas authorities,” according to the filing.FTX accused Bankman-Fried of working with the Bahamas liquidators to “undermine” the U.S. bankruptcy case and shift assets overseas.Bankman-Fried has said that he regrets filing for Chapter 11 in the U.S. and wants to “win a jurisdictional fight” to move the bankruptcy proceedings out of Delaware.Bahamas regulators said Thursday that FTX Digital is being liquidated in the Bahamas and is not a part of the U.S. bankruptcy proceeding that includes parent company FTX Trading and more than 100 affiliated companies.

Reuters Article

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