Bahamas Regulator Ordered FTX To Transfer The Crypto To Government Wallets

The Financial and Securities Commission of the Bahamas issued an order mandating the transfer of FTX’s digital assets to government wallets.
On November 12, the Securities Commission of The Bahamas (SCB) announced that it had issued an order requiring FTX Digital Markets (FDM) to transfer all of its digital assets to a digital wallet that was held by the commission itself.

The SCB said in a statement that it exercised its jurisdiction as a regulator acting under the authority of an order from the Supreme Court, moving the assets to a “digital wallet held by the Commission, for safekeeping.” The announcement was released on November 17th.
The decision that SCB made a week ago was justified by the statement that “rapid interim regulatory action was necessary to protect the interests of clients and creditors of FDM.”

The most recent discovery might put some light on some transactions of monies that were discovered the previous week

The cryptocurrency community discovered a series of suspicious transactions in wallets connected to FTX and FTX.US on November 11, and analysts reported that about $663 million was lost as a result. It is believed that $477 million were taken without permission, while the remaining funds are thought to have been transported by FTX employees to a safe location.

However, the SCB statement did not include any information regarding the quantity of FDM’s digital assets that were relocated as a direct result of their order.

Only two days after the commission froze FDM’s assets on November 10 and suspended FTX’s registration in the country and stripped the FTX directors of their power, the commission would have announced its order.

Additionally, it was announced at the time that the assets of FDM could only be moved after receiving permission to do so from a provisional liquidator who had been appointed by the Supreme Court.

The drama surrounding the FTX bankruptcy has continued to play out over the course of the past week.

On November 15, FDM submitted a petition for protection under Chapter 15 of the United States Bankruptcy Code in a court located in New York, in order to request that the United States recognise the liquidation procedures that were taking place in the Bahamas.

For more updates on the FTX blowout, stay tuned to Blockmanity.

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