Bahamas regulators holding USD 3.5 bn in FTX customers' assets

Based on information provided by Sam Bankman-Fried to the Commission concerning the cyberattacks that took place on the systems of crypto exchange FTX, the Commission said, "there was a significant risk of imminent dissipation as to the digital assets under the custody or control of FTX to the prejudice of its customers and creditors."

The Securities Commission of the Bahamas (SCB) has taken custody of FTX deposits valued at more than $3.5 billion as of November 12, according to a statement from SCB. Based on information provided by Sam Bankman-Fried to the Commission concerning the cyberattacks that took place on the systems of crypto exchange FTX, the Commission said, "there was a significant risk of imminent dissipation as to the digital assets under the custody or control of FTX to the prejudice of its customers and creditors."

Because of this, the Commission requested and obtained a Court order to safeguard the digital assets owned by or under the custody or control of FTX or its principals by transferring them to secure digital wallets under the exclusive control of the Commission, according to a media release published late Thursday by the SCB. Assets will be held until the Bahamas Supreme Court directs the Commission to deliver them to the customers and creditors who own them, the statement says.

Crypto exchange FTX filed for Chapter 11 bankruptcy protection in the US on November 11. The Commission said that FTX founders Sam Bankman-Fried and Gary Wang no longer had access to the $3.5 billion in tokens that were transferred. (ANI)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)