The Securities and Exchange Commission of The Bahamas (SCB) announced that on November 12, it had ordered the transfer of all digital assets from FTX Digital Markets (FDM) to a commission-owned digital wallet. In a statement on November 17, the SCB said it had exercised its powers as a regulator, acting under the authority of a Supreme Court order, moving assets to a “commission-controlled digital wallet for safekeeping.”
Last week’s action was justified by SCB, which claimed that “immediate interim regulatory action was required to protect the interests of FDM’s customers and creditors. The crypto community has reported several suspicious transactions involving FTX and FTX.US-connected wallets, with analysts reporting around $663 million spent $477 million was suspected of being stolen, while the remainder was believed to have been taken to safe storage by FTX. However, the SCB statement should have mentioned the number of FDM digital assets moved due to their order.
The commission’s order reportedly came just two days after the commission froze FDM’s assets on November 10, suspended FTX’s registration in the country and stripped FTX’s directors of their powers. He also stated at the time that FDM’s assets could only be moved if the approval of an interim receiver appointed by the Supreme Court was obtained.
The drama of the FTX bust has continued to unfold over the past week. On November 15, FDM filed for Chapter 15 bankruptcy protection in a court in New York, seeking relief from U.’s liquidation proceedings in the Bahamas. Brian Simms, the court-appointed interim trustee overseeing FTX Digital Markets bankruptcy proceedings in the Bahamas, argued in the filing that FDM lacked the authority to file a Chapter 11 application in the United States and denied the validity of the Submission from On November 17, FTX Trading Limited filed an emergency motion arguing that both the Chapter 11 case and all proceedings related to Chapter 15 filings should be brought in the US bankruptcy court, located in Delaware, to “clean up the mess to exit and ensure that assets can be protected and ordered in an orderly process.
The same filing also alleged that they have “credible evidence that the Bahamian government is responsible for directing unauthorized access into debtors’ systems to obtain debtors’ digital assets, which, after the commencement of these cases, took place.”