The FTX emblem on a laptop computer display.
Andrey Rudakov | Bloomberg through Getty Images
The Securities Commission of The Bahamas says it seized $3.5 billion price of cryptocurrency from collapsed crypto alternate FTX.
In a media release late Thursday, the watchdog confirmed the overall sum taken from FTX’s Bahamian subsidiary, FTX Digital Markets, and added that the funds had been moved into its personal digital wallets “for safekeeping.”
The regulator had beforehand confirmed it was holding some of FTX’s digital assets however didn’t specify the quantity.
The funds had been valued at over $3.5 billion, primarily based on market pricing on the time of switch, in response to the Commission. The switch befell on Nov. 12, the day after FTX filed for Chapter 11 chapter safety within the U.S.
The Bahamian securities fee mentioned the funds are being held on a “temporary basis” till it’s directed by the nation’s Supreme Court to ship them to clients and collectors, or to liquidators of the insolvency property.
The regulator mentioned it took the funds after receiving data from Sam Bankman-Fried, FTX’s disgraced co-founder, regarding cyberattacks on the techniques of FTX’s Bahamian unit.
There was “significant risk of imminent dissipation” of the assets underneath FTX Digital Markets’ management, it mentioned.
After FTX filed for chapter, it was focused in a suspected hack that noticed $477 million drained from the agency’s crypto wallets. The identification of the perpetrator isn’t but identified.
The Bahamian regulator has been scrutinized over its position within the FTX collapse and subsequent authorized proceedings.
The Commission wished to deal with insolvency proceedings for FTX within the Bahamas. But FTX’s U.S. attorneys contested the transfer, alleging that it coordinated with Bankman-Fried to switch FTX digital assets to its personal custody.
U.S. attorneys for FTX had refused to present liquidators appointed by the Bahamian court docket entry to the company’s computer techniques, saying: “We do not trust the Bahamian government.”
FTX’s former CEO Bankman-Fried was arrested within the Bahamas and subsequently extradited to the United States, the place he’s awaiting trial on prices of fraud, conspiracy to commit money laundering and conspiracy to defraud the U.S. and violate marketing campaign finance legal guidelines.
He was launched final week on $250 million bail, and has reportedly been receiving guests in his California household residence, together with “The Big Short” creator Michael Lewis.
Bankman-Fried is anticipated to be arraigned and enter a plea in federal court docket in Manhattan on Jan. 3, in response to a Reuters report.