Bahamas regulators confirm they’re holding some of FTX’s assets

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FTX emblem with crypto cash with 100 Greenback invoice are displayed for illustration. FTX has filed for chapter within the US, in search of courtroom safety because it appears for a option to return cash to customers.
Jonathan Raa | Nurphoto | Getty Photographs

Securities regulators within the Bahamas conceded that they ordered the switch of FTX digital belongings from firm wallets into their very own custody, citing the authority granted to them by the Supreme Court docket of the Bahamas and difficult FTX’s assertion that the U.S. Chapter 11 bankruptcy processes applied to them.

In a press statement Thursday night, the Securities Fee of the Bahamas (SCB) stated it had exercised “its powers as a regulator” and directed the switch of “all digital belongings” of FTX Digital Markets, a Bahamian subsidiary of the FTX empire.

The worth of the belongings is unknown. Crypto analysis agency Elliptic, nonetheless, believes that the $477 million theft reported over this weekend was tied to strikes by Bahamian regulators.

Statements from each the Bahamas and U.S. attorneys counsel “that the ‘hack’ was really the seizure of FTX belongings by the Bahamian authorities,” Elliptic wrote.

The submitting struck again at an emergency submitting by FTX in U.S. courtroom which challenged the standing of the Bahamian liquidators and requested the Delaware Chapter Court docket to intervene and implement an automated keep, an ordinary characteristic of Chapter 11 chapter proceedings.

That submitting accused the Bahamian authorities of seizing FTX belongings and shifting them into their very own custody, an accusation borne out by the SCB’s personal assertion.

Sam Bankman-Fried, founder and former CEO of FTX and the ex-majority proprietor of a posh internet of FTX-Alameda Analysis subsidiaries, was accused by FTX’s legal professionals of working with Bahamian regulators to maneuver digital belongings out of FTX’s custody and right into a Fireblocks asset custody account.

Bankman-Fried was successfully within the custody of the Bahamian authorities, the FTX submitting noticed.

“It isn’t the understanding of the Fee that FDM [FTX Digital Markets] is a celebration to the US Chapter 11 Chapter proceedings,” the Bahamian regulator’s launch learn.

Bankman-Fried, securities regulators and FTX’s legal professionals haven’t but responded to requests for remark.

CNBC’s Mackenzie Sigalos contributed to this report.


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