Securities Regulator of Bahamas Confiscates FTX Assets
The Securities Commission of The Bahamas (SCB) stated to have directed the transaction of the entirety of the digital assets under FTX Digital Markets’ (FDM) possession to a wallet of the commission on the 12th of November. A statement was issued by the SCB on the 18th of this month saying that the company utilized the potential of being a regulator to operate under an order issued by the Supreme Court. In this way, it acquired the authority to shift the assets to a digital wallet under the Commission’s control, to keep them safe.
Securities Commission of The Bahamas Assumes Control of Assets of FTX Digital Markets Ltd. pic.twitter.com/IzW4PGZSJm
— Securities Commission of The Bahamas (@SCBgov_bs) November 18, 2022
Securities Regulator of Instructs to Transact the Digital Assets of FTX
SCB clarified the move taken by it in the previous week by mentioning that an emergency regulatory measure was required to shield the FDM creditors and consumers’ interests. The unique revelations could bring a few fund movements which were identified last week. The crypto community, on the 11th of November, cautioned that several suspicious transfers were made to the wallets connected to FTX.US and FTX.
Related: FTX Files for Ch. 11 Bankruptcy / SBF Resigns As CEO
The analysts reported that up to $663 million amount of assets was drained in the respective episode. Nearly $477M worth among them was supposed to be exploited whereas the remaining funds were considered to have been shifted by FTX to some secure storage. Nonetheless, the statement made by SCB did not mention anything regarding the shifting of the digital assets of FDM after its order.
The order of the commission would have been issued just a couple of days following FDM’s assets being frozen by the commission on the 10th of this month. The commission additionally suspended the registration of FTX within the jurisdiction, along with stripping the power of FTX directors. At that point, it also mentioned that the assets of FDM could just be shifted by securing authorization from the Supreme Court regarding a temporary liquidator.
US Rejects FDM’s Request for Chapter 11 Bankruptcy Proceedings
The bankruptcy episode of FTX kept on unfolding during the previous week. On the 15th of November, FDM submitted a request for bankruptcy protection under Chapter 15 in a court based in New York. The target of this move was to secure recognition from the Bahamas-based liquidation proceedings. The court appointed a provisional liquidator named Brian Simms to oversee FTX Digital Markets’ bankruptcy proceedings. In the filing, Simms argued that no authorization has been given to FDM for a Chapter 11 filing in the US.
