Bahamas Securities Regulator Takes Full Control of FTX’s Digital Assets

Lavina Daryanani
Source: Yahoo Entertainment

On Thursday, the Securities Commission of The Bahamas announced that it ordered all contents of FTX’s crypto wallets to be transferred to a wallet controlled by it.

The media release statement noted,

On 12 November 2022, the Securities Commission 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.

Per the commission, “urgent interim regulatory action” was essential to “protect the interests of clients and creditors of FDM.”

Also Read: FTX Files for Bankruptcy as CEO Sam Bankman-Fried Resigns

The Bankruptcy Tangent

Towards the end of last week, Sam Bankman-Fried’s crypto exchange FTX filed for Chapter 11 bankruptcy protection in the US. However now, it seems like there might be a jurisdiction dispute between the US and the Bahamas.

 SCB’s statement added,

“It is not the understanding of the Commission that FDM is a party to the US Chapter 11 Bankruptcy proceedings.”

Now, however, reports have emerged claiming that the founder of FTX regrets his decision to file for bankruptcy. Bankman-Fried recently said that those in charge of FTX’s Chapter 11 bankruptcy process were “trying to burn it all to the ground out of shame,” and that he had two weeks in which to raise $8 billion and save the company. He said,

“That’s basically all that matters (raising the money) for the rest of my life… If I hadn’t done that [filed for Chapter 11 bankruptcy], withdrawals would be opening up in a month with customers fully whole.”

In its statement, the Securities Commission of The Bahamas also stated that it will engage with other regulators and authorities in multiple jurisdictions going forward to address matters affecting the creditors, clients and stakeholders of FDM globally to obtain “the best” possible outcome.