Bahamas Regulators Confirm They Told SBF To Transfer Assets

Last week, customer funds worth millions of dollars had moved off mysteriously from the FTX exchange after it had filed for bankruptcy.

The embattled company disclosed in a new filing that these had been moved as per the orders of the regulatory authorities in the Bahamas.

Late on Thursday, the Securities Commission of the Bahamas (SCB) also confirmed this statement.

(Advertisement)Artificial Intelligence Crypto Trading Artificial Intelligence Crypto Trading System - Surpass the competition with this cutting-edge AI system! Utilize the prowess of innovative algorithms and amplify your crypto trading strategies with CypherMindHQ. Learn more today!

The filing

The new CEO of the FTX Group, John J. Ray signed the new filing. He is known as the liquidator for Enron.

The filing said that there was evidence of the government of the Bahamas issuing the order of moving the digital assets belonging to FTX, which had been unauthorized.

The company also said that co-founders Gary Wang and Sam Bankman-Fried had confirmed that the pair had been instructed by Bahamian regulators to make the transfers.

They also revealed that the funds were now under the custody of the government of the Bahamas on FireBlocks.

This is not the first time that the island nation has been accused, but it had denied the same previously. However, the regulatory authorities of the Bahamas opted for a different course this time.

The regulators

On Thursday, the Securities Commission of the Bahamas (SCB) stated that it had used its regulatory powers under the authority of the Supreme Court of the Bahamas.

(Advertisement)Artificial Intelligence Crypto Trading Artificial Intelligence Crypto Trading System - Outpace the competition with this high-end AI system! Leverage the capabilities of progressive algorithms and enhance your crypto trading performance with CypherMindHQ. Learn more today!

The agency said that it had instructed FTX Digital Markets Ltd. to transfer its digital assets for safekeeping to a digital wallet that is under the Commission’s control.

According to the regulatory authority, these steps had been taken for protecting the interests of creditors and clients of its own jurisdiction.

This appears to be just the latest twist in the attempt to safeguard the assets that are owned by FTX, as the bankruptcy proceedings have to move forward.

Sam Bankman-Fried has been called by regulatory authorities in the US to testify in December in front of a House Financial Services Committee about the collapse of his FTX crypto empire.

More details

FTX stated in a recent filing that they had only managed to secure a fraction of their total digital assets, but there are still gaps.

Currently, a new cold wallet contains only $740 million worth of digital assets that belong to the FTX Group.

There is still crypto not under their control as yet because the co-founders have not been able to identify the additional wallets that may contain digital assets belonging to the company.

Secondly, $372 million worth of digital assets had also been transferred on the day the company filed for bankruptcy, which was apparently on the order of the Bahamian regulators.

Thirdly, an authorized source also minted FTT tokens worth $300 million after the bankruptcy filing as well.

The transfers, which in total were worth $650 million, had resulted in a wave of speculation and some had believed that FTX had been hacked.

Ryne Miller, the general counsel for FTX US, had called these transactions ‘unauthorized’ and said that they were shifting the remaining assets.