[ad_1]
The Bahamas Securities Commission has revealed that it has seized over $3.5 billion in digital assets from the failed cryptocurrency exchange FTX. The regulator explained that the cryptocurrency was transferred to its wallet “for safekeeping” and is “temporarily held by the commission.”
Bahamas regulator seizes FTX cryptocurrency
The Bahamas Securities Commission (SCB) announced Thursday that it has obtained a court order to transfer digital assets owned by, or in custody or control of, FTX Digital Markets Ltd. (FTXDM) to secure wallets. FTX Digital Markets is the Bahamian subsidiary of Sam Bankman-Fried’s FTX Trading Ltd., which owns and operates the cryptocurrency trading platform FTX.com.
The regulator wrote on November 12th:
The Commission … directs the transfer of all digital assets in custody or control of FTXDM or its principals with a value greater than US$3.5 billion based on the market price at the time of transfer to digital wallets controlled by the Commission. I have taken steps to save it.
The commission added that it was exercising its “authority as a regulator to act under the authority of an order made by the Supreme Court of the Bahamas.” is not included,” he stressed.
The seized cryptocurrencies are “temporarily held by the Commission until the Supreme Court of the Bahamas directs the Commission to turn them over to customers and creditors who own them, or to JPL. [Joint Provisional Liquidators] It will be administered under the rules governing bankruptcy property for the benefit of FTXDM’s customers and creditors,” the regulator said.
The Securities Commission noted that the seizure took place on Nov. 16 “under a sealing order requested by the Commission and authorized by the Supreme Court of the Bahamas.”
The Commission did not direct, approve, or recommend to FTXDM the prioritization of Bahamian customer withdrawals.
FTX filed for bankruptcy on November 11, costing an estimated 1 million customers and investors billions of dollars. The US government and regulators have filed multiple fraud charges against the cryptocurrency company and her Bankman-Fried. The former FTX CEO was arrested in the Bahamas and extradited to the U.S. last week, and he now lives at his parents’ house in Palo Alto, California with his $250 million bond.
What are your thoughts on Bahamian regulators seizing FTX crypto assets for safekeeping? Let us know in the comments section below.
image credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. NEITHER THE COMPANY NOR THE AUTHOR WILL BE LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY DAMAGE OR LOSS ARISING OR ALLEGED TO OCCUR ARISING OUT OF OR RELATING TO YOUR USE OF OR RELIANCE ON ANY CONTENT, PRODUCTS OR SERVICES DESCRIBED IN THIS ARTICLE. We are not responsible.
[ad_2]
Source link
