Blockchain News

Over $3,500,000,000 in Crypto Transferred to the Bahamas’ Regulator Hours After FTX Declared Bankruptcy

Just hours after crypto exchange FTX declared bankruptcy, the Securities Commission of The Bahamas received over $3.5 billion in digital assets.

According to a new press release, the Bahamian regulator forced FTX to transfer all crypto assets under its control to government-owned wallets for “safekeeping” on November 12th, the day after FTX declared bankruptcy.

“On 12 November 2022, the Commission took the action of directing the transfer of all digital assets under the custody or control of FTXDM or its principals, valued at more than US$3.5 billion, based on market pricing at the time of transfer, to digital wallets controlled by the Commission, for safekeeping, in the exercise of its powers as regulator acting under the authority of an Order made by the Supreme Court of The Bahamas.”

According to the Securities Commission, they are only holding the crypto assets temporarily and intend to return them to their rightful owners, whether they were FTX customers or creditors.

“The digital assets transferred on November 12, 2022, to digital wallets under the Commission’s exclusive control are being held by the Commission on a temporary basis, until The Bahamas Supreme Court directs the Commission to deliver them to the customers and creditors who own them, or to the JPLs [Joint Provisional Liquidations] to be administered under rules governing the insolvency estate for the benefit of FTXDM’s customers and creditors.”

After halting customer withdrawals, FTX filed for bankruptcy on November 11. Sam Bankman-Fried, the company’s founder and former CEO, is accused of mishandling billions of dollars in customer funds and defrauding investors. He is currently free on bail pending his trial.


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