Regulation

Bahamian securities regulator ordered the transfer of FTX’s digital assets

The Securities Fee of The Bahamas (SCB) mentioned it had ordered the switch of all digital belongings of FTX Digital Markets (FDM) to a digital pockets owned by the fee on Nov. 12. 

In a Nov. 17 assertion, the SCB mentioned it exercised its energy as a regulator performing below the authority of a Supreme Court docket order — transferring the belongings to a “digital pockets managed by the Fee, for safekeeping.”

SCB justified final week’s transfer by stating that “pressing interim regulatory motion was mandatory to guard the pursuits of purchasers and collectors of FDM.”

The most recent revelation may shed some gentle on sure actions of funds detected final week. 

On Nov. 11, the crypto group flagged a variety of suspicious transactions in wallets tied to FTX and FTX.US, with analysts reporting round $663 million drained. $477 million have been suspected to be stolen whereas the rest was believed to have been moved to safe storage by FTX themselves.

The SCB assertion nevertheless didn’t make any point out of how a lot of FDM’s digital belongings have been moved because of their order.

Cointelegraph has reached out to SCB for readability however has not acquired a response by the point of publication. 

The fee’s order would have been made solely two days after the fee froze FDM’s belongings on Nov. 10, suspended FTX’s registration within the nation, and stripped the FTX administrators of their energy.

On the time, it additionally said that FDM’s belongings may solely be moved by acquiring the approval of a provisional liquidator appointed by the Supreme Court docket.

Associated: FTX reportedly hacked as officers flag irregular pockets exercise

The FTX chapter drama has continued to unfold over the past week.

On Nov. 15, FDM filed for Chapter 15 chapter safety in a New York-based court docket in an effort to search U.S. recognition of the Bahamian liquidation proceedings.

Brian Simms, the court-appointed provisional liquidator overseeing the chapter proceedings of FTX Digital Markets within the Bahamas argued within the submitting that FDM wasn’t licensed to file for Chapter 11 in the USA, and rejected the validity of the submitting.

On Nov. 17, an emergency motion by FTX Buying and selling Restricted argued that each the Chapter 11 case and all proceedings associated to Chapter 15 filings ought to happen within the Delaware-based U.S. Chapter Court docket in an effort to “finish the chaos and to make sure that belongings may be secured and marshalled in an orderly course of.”

The identical submitting additionally claimed they’ve “credible proof that the Bahamian authorities is answerable for directing unauthorized entry to the Debtors’ methods for the aim of acquiring digital belongings of the Debtors—that occurred after the graduation of those circumstances.”

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