Bahamas’ Regulating authority Explains Why it Made the Right Call to Seize FTX Assets

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Bahamas’ Regulating authority Explains Why it Made the Right Call to Seize FTX Assets

In a new press release, the Securities Commission of stated that only placing FTX Digital Markets into liquidation was not sufficient, citing the dangers associated with hacking and breach.

SCB Director likewise lashed out at new FTX CEO John Jay Ray III for “misrepresenting” the agency’s action through the “intemperate” and “inaccurate” allegations.

Bahamas Regulator’s Statement

Its Executive Director, Christina Rolle, revealed that the Commission sought an additional order from the Bahamian supreme court for under the “Digital Assets and Registered Exchanges Act” to transfer all digital assets of the into digital under its control. This move was meant to “benefit the clients and creditors of FDM (FTX Digital Markets Ltd).”

Rolle stated,

“It is unfortunate that in Chapter 11 filings, the new CEO of FTX Trading Ltd. misrepresented this timely action through the intemperate and inaccurate allegations lodged in the Transfer Motion. It is likewise concerning that the Chapter 11 debtors chose to rely on the statements of they have (in other filings) characterized as unreliable of and potentially seriously compromised.”

The Executive Director likewise stated that certain statements made by the purported officers of and its Chapter 11 debtors about suffering thefts and breaches further solidified the Commission’s action to secure these digital assets.

New FTX CEO on Transfer of Funds

The mysterious transfers were 1st detected on November 11, the same day FTX declared bankruptcy, leading to a flurry of speculation. The most recent comments, on the other hand, come days after millions of dollars in FTX customer funds were moved the exchange last week at the direction of regulatory authorities in the island nation. This assertion was made by Ray, who stated in a filing,

“(There is) 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.”

The company likewise revealed that its co-founders Bankman-Fried and Gary Wang were recorded saying that regulatory authorities in the country directed the dup to conduct “certain post-petition transfers” and that such assets were “custodied on FireBlocks under the control of the Bahamian government.”

Bahamian regulatory authorities stated it took these actions to protect the of clients and creditors under its jurisdiction.

Since the blow-up, FTX and its founders have been at the receiving end of a severe backlash. It was recently reported that the failed cryptocurrency exchange, its senior executives, likewise as Bankman-Fried’s parents purchased at least 19 properties worth nearly $121 Million in the Bahamas in the previous two years.

The post Bahamas’ Regulating authority Explains Why it Made the Right Call to Seize FTX Assets appeared 1st on CryptoPotato.

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