Bahamas Regulator explains why it made the right decision to freeze FTX assets


In a new press release, the Securities Commission of the Bahamas explained that simply placing FTX Digital Markets in liquidation was not enough, citing the risks associated with hacking and breaches.

The SCB’s executive director also lashed out at new FTX CEO John J. Reid III for “misrepresenting” the agency’s actions through “unsubstantiated” and “false” allegations.

statement from the regulator of the Bahamas

Its executive director, Christina Rolle, revealed that the commission has applied for an additional order from the Bahamian Supreme Court for authorization under the Digital Assets and Registered Exchanges Act to transfer all digital assets from the exchange to digital wallets under its exclusive control. Can go The move was “for the benefit of the customers and creditors of FDM (FTX Digital Markets Limited)”.

Rolle said,

“It is unfortunate that the new CEO of FTX Trading Ltd. in the Chapter 11 filing misrepresented this timely action by unsubstantiated and inaccurate allegations filed in the Transfer Motion. It is also concerning that Chapter 11 debtors have chosen to rely on statements from individuals who are described (in other documents) as unreliable sources of information and who may have been seriously compromised.

The executive director also added that certain statements by alleged executives of the exchange and its Chapter 11 debtors regarding theft and breaches further strengthened the committee’s action to secure these digital assets.

New FTX CEO on fund transfer

The mysterious transfers were first discovered on November 11, the same day FTX went bankrupt, sparking a flurry of speculation. However, the latest comments come days after millions of dollars in FTX client funds were removed from the exchange last week at the urging of regulators in the island nation. This claim was made by Ray, who said in the filing:

“(There is) credible evidence that the Bahamian government is responsible for directing unauthorized access to the debtors’ systems for the purpose of obtaining the debtors’ digital assets – which occurred after the commencement of these matters.”

The company also disclosed that its co-founders Sam Bankman-Fried and Gary Wang were included, saying regulators in the country had directed Duplicate to make “certain post-petition transfers and such assets.” Fireblocks were in custody under the control of the Bahamian government.

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Bahamian regulators said it was taking these steps to protect the interests of customers and creditors under its jurisdiction.

Since the implosion, FTX and its founders have faced serious backlash. It was recently reported that the parent of the failed crypto exchange, its senior executives, as well as Bankman-Fried, have purchased at least 19 properties in the Bahamas worth at least $121 million over the past two years.

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