Bahamas watchdog ordered FTX to send digital assets to its wallet

CryptoSlate

The regulator said the move was aimed at “safekeeping” the assets and “was necessary to protect the interests of clients and creditors” of the bankrupt exchange.

Cover art/illustration via CryptoSlate

The Securities Commission of Bahamas revealed on Nov. 18 that it directed FTX to transfer digital assets under its control to the Commission’s wallet on Nov. 12.

How To Get Free Crypto  

According to the regulator, the directive was aimed at “safekeeping” the assets and “was necessary to protect the interests of clients and creditors” of the bankrupt exchange.

FTX court filing reveals the firm sent assets to Bahamas authorities

A Nov. 17 court filing from FTX revealed that it has recorded and verified text evidence that the Bahamas regulators directed the unauthorized access and withdrawal from the bankrupt exchange.

According to the filing, former CEO Sam Bankman-Fried and CTO Gary Wang were behind the Nov. 13 events. The exchange said the assets were “custodied on FireBlocks under control of Bahamian gov’t.”

“The Debtors thus have credible evidence that the Bahamian government is responsible for directing unauthorized access to the Debtors’ systems for the purpose of obtaining digital assets of the Debtors—that took place after the commencement of these cases.”

FTX also challenged the complaint filed by the Bahamas-government appointed liquidators in New York. The liquidators had filed a Chapter 15 in a New York court requesting the court to grant it control of the proceedings in the Bahamas.

Coinbase Banner  

According to FTX, the Chapter 15 filing should be transferred from the New York court to Delaware to avoid “potentially inconsistent opinions, duplication of efforts, and unnecessary expense.”

FTX also argued that the Bahamas-appointed liquidators did not mention its intention to file a Chapter 15 case in a new court in the United States.

The Bahamas regulator had earlier said it did not instruct FTX to prioritize the withdrawal of Bahamian assets.

Reports had revealed that the FTX hacker was the 35th-largest holder of Ethereum. The hacker’s address holds a total of 228,523 ETH worth $284.82 million. The hacker had also been swapping and moving tokens since the beginning of this week.

Posted In: FTX, Bankruptcy

Go to Source
Author: Oluwapelumi Adejumo


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.