The Bahamas' securities regulator said it ordered cryptocurrencies from FTX transferred to government-controlled wallets 'to protect the interests of clients and creditors' of the bankrupt crypto company. nikhileshde reports
The Securities Commission of the Bahamas announced Thursday that it ordered the contents of FTX's crypto wallets to be transferred to government-controlled wallets on the previous Saturday.
"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. to a digital wallet controlled by the Commission, for safekeeping," the release said."Urgent interim regulatory action was necessary to protect the interests of clients and creditors of FDM.
FTX filed for bankruptcy on Friday, Nov. 11, in a chaotic filing which mistakenly labeled a number of companies not part of the FTX umbrella as also filing for bankruptcy. On the evening of Nov. 11 and into the early hours of Nov. 12, the company appeared to be hacked, with hundreds of millions of dollars worth of crypto flowing out of FTX's wallets. Some of these transactions were tied to profane comments about former FTX CEO Sam Bankman-Fried.
FTX Digital Markets filed for chapter 15 bankruptcy in the U.S. on Nov. 15, days after most of the rest of the FTX group filed for chapter 11 bankruptcy. Even odder, FTX Digital Markets filed for bankruptcy in the Southern District of New York, rather than Delaware where the rest of the companies filed.that Bahamas court-appointed joint provisional liquidators made the filing, which recognizes foreign bankruptcies, as part of an effort to undermine the broader group's U.S. filings.
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