Bahamian securities regulator ordered the transfer of FTX’s digital assets

The Securities Commission of The Bahamas (SCB) mentioned it had ordered the transfer of all digital assets of FTX Digital Markets (FDM) to a digital pockets owned by the fee on Nov. 12. 

In a Nov. 17 assertion, the SCB mentioned it exercised its energy as a regulator appearing beneath the authority of a Supreme Court order — transferring the assets to a “digital pockets managed by the Commission, for safekeeping.”

SCB justified final week’s transfer by stating that “pressing interim regulatory motion was vital to guard the pursuits of shoppers and collectors of FDM.”

The newest revelation may shed some mild on sure actions of funds detected final week. 

On Nov. 11, the crypto neighborhood flagged a quantity of suspicious transactions in wallets tied to FTX and FTX.US, with analysts reporting round $663 million drained. $477 million had been suspected to be stolen whereas the the rest was believed to have been moved to safe storage by FTX themselves.

The SCB assertion nevertheless didn’t make any point out of how a lot of FDM’s digital assets had been moved consequently of their order.

Cointelegraph has reached out to SCB for readability however has not obtained a response by the time of publication. 

The fee’s order would have been made solely two days after the fee froze FDM’s assets on Nov. 10, suspended FTX’s registration in the nation, and stripped the FTX administrators of their energy.

At the time, it additionally said that FDM’s assets may solely be moved by acquiring the approval of a provisional liquidator appointed by the Supreme Court.

Related: FTX reportedly hacked as officers flag irregular pockets exercise

The FTX chapter drama has continued to unfold over the final week.

On Nov. 15, FDM filed for Chapter 15 chapter safety in a New York-based court docket as a way to search U.S. recognition of the Bahamian liquidation proceedings.

Brian Simms, the court-appointed provisional liquidator overseeing the chapter proceedings of FTX Digital Markets in the Bahamas argued in the submitting that FDM wasn’t approved to file for Chapter 11 in the United States, and rejected the validity of the submitting.

On Nov. 17, an emergency movement by FTX Trading Limited argued that each the Chapter 11 case and all proceedings associated to Chapter 15 filings ought to happen in the Delaware-based U.S. Bankruptcy Court as a way to “finish the chaos and to make sure that assets will be secured and marshalled in an orderly course of.”

The identical submitting additionally claimed they’ve “credible proof that the Bahamian authorities is accountable for directing unauthorized entry to the Debtors’ methods for the goal of acquiring digital assets of the Debtors—that befell after the graduation of these instances.”