The Bahamas securities regulator confirms that it has ordered FTX to transfer assets to the government wallet

The Securities Commission of the Bahamas (SCB) has announced that it has ordered bankrupt FTX exchange to transfer its crypto assets to a government-controlled wallet. The regulator disclosed this in statement on Twitter on Thursday.

SCB said it had ordered FTX Digital Markets to transfer all of its assets to the agency’s digital wallet. This was done to protect clients and creditors on November 12, the day after FTX Group filed for Chapter 11 bankruptcy in the United States.

“The Securities Commission of The Bahamas, in the exercise of its powers as regulator acting under the authority of an Order made by the Supreme Court of The Bahamas, took the action of directing the transfer of all digital assets of FTX Digital Markets Ltd. (FDM) to a digital wallet controlled by the Commission, for safekeeping. Urgent interim regulatory action was necessary to protect the interests of clients and creditors of FDM,” the SCB stated.

The SSC also said it believes FTX Digital Markets, a subsidiary of FTX Corporation headquartered in the Bahamas, is not part of FTX Group’s bankruptcy proceedings in the United States. After millions of dollars started flowing from FTX wallets to a wallet controlled by SCB Bank.

At the time, the massive move was classified as a hack, as confirmed by FTX itself on Twitter. Former FTX CEO Sam Bankman-Fried confirmed in leaked private messages that there are two possibilities. The millions of dollars in coins and tokens that left FTX were either a hack or an inside job by a former employee.

However, the bankrupt exchange released a file yesterday. It said it had sufficient evidence to believe that the Bahamas government directed unauthorized access to the exchange’s systems. It did so to withdraw its assets after declaring bankruptcy in the United States

It is also not clear which transactions and assets the parties are referring to specifically. The wallet associated with draining FTX funds has made many transactions and swaps. It now owns about $400 million in various crypto assets, including ETH, BNB, DAI, and more. In addition, it contains more than 228 thousand ETH coins. It is worth around $300 million, making it the 36th largest holder of ETH in the world.

The FTX disaster continues to unfold. New revelations show that Bahamas authorities have directed FTX to transfer its assets to the government. This points to the growing rift between regulators in the US and the Bahamas. If anything, this story is only going to get more interesting as time goes on and new details are revealed.

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