The Bahamas regulator explains why the right call is being made for the takeover of FTX assets

In a new press release, the Bahamas Securities Commission made it clear that simply putting FTX Digital Markets into liquidation was not enough, citing risks associated with hacking and breaches.

SCB’s CEO also criticized new FTX CEO John Jay Ray III for “distracting” the agency’s actions with “out of the ordinary” and “false” accusations.

Bahamas Regulatory Authority statement

CEO Christina Rule revealed that the commission sought another order from the Bahamas Supreme Court regarding the authority under the “Digital Assets and Registered Exchanges Act” to move all digital assets from the exchange to digital wallets under its exclusive control. The move was intended to “benefit customers and creditors of FDM (FTX Digital Markets Ltd)”.

roll said,

“It is unfortunate that the new CEO of FTX Trading Ltd. in its Chapter 11 filings misrepresented this timely action through the false and negligent allegations made in the transfer request. It is also troubling that the Chapter 11 debtors chose to rely on the statements of the individuals they described. (in other filings) as unreliable and potentially seriously compromised sources of information.”

The CEO also said that certain statements by alleged exchange officials and Chapter 11 debtors that they had been subjected to theft and interference bolstered the commission’s work to secure these digital assets.

New CEO of FTX Money Transfer

The mysterious transfers were only discovered on November 11, the same day that FTX declared bankruptcy, which led to a flurry of speculation. However, the latest comments came days after millions of dollars in FTX client funds were moved from the exchange last week on the instructions of regulators in the island nation. This claim was made by Ray, who said in an application,

“(There is) credible evidence that the Government of The Bahamas is responsible for directing unauthorized access to the debtors’ systems for the purpose of obtaining the debtors’ digital assets – which occurred after these cases were initiated.”

The company also disclosed the filing of its co-founders Sam Bankman-Fried and Gary Wang, saying that regulators in the country had ordered the scammer to make “certain transfers following petitions” and that those assets were “held on FireBlocks under the control of the Bahamas government.”

The Bahamas regulators said they took these steps to protect the interests of clients and creditors under its jurisdiction.

Since the explosion, FTX and its founders have been on the receiving end of a serious backlash. It was recently reported that the failed cryptocurrency exchange and its top executives as well as Bankman-Fried’s parents have purchased at least 19 properties worth approximately $121 million in the Bahamas over the past two years.

Post-Bahamian Regulator Explains Why To Make The Right Call To Seize FTX Assets appeared first on CryptoPotato.

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