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The Securities Commission of The Bahamas (SCB) said it had ordered the transfer of all digital assets of FTX Digital Markets (FDM) to a digital wallet owned by the commission on Nov. 12.\u00a0<\/p>\n
In a Nov. 17 statement, the SCB said it exercised its power as a regulator acting under the authority of a Supreme Court order \u2014 moving the assets to a \u201cdigital wallet controlled by the Commission, for safekeeping.\u201d<\/p>\n
\nSecurities Commission of The Bahamas Assumes Control of Assets of FTX Digital Markets Ltd. pic.twitter.com\/IzW4PGZSJm<\/a><\/p>\n
\u2014 Securities Commission of The Bahamas (@SCBgov_bs) November 18, 2022<\/a><\/p><\/blockquote>\n
SCB justified last week\u2019s move by stating that \u201curgent interim regulatory action was necessary to protect the interests of clients and creditors of FDM.\u201d<\/p>\n
The latest revelation could shed some light on certain movements of funds detected last week.\u00a0<\/p>\n
On Nov. 11, the crypto community flagged a number of suspicious transactions<\/a> in wallets tied to FTX and FTX.US, with analysts reporting around $663 million drained. $477 million were suspected to be stolen while the remainder was believed to have been moved to secure storage by FTX themselves. <\/p>\n
The SCB statement however did not make any mention of how much of FDM\u2019s digital assets were moved as a result of their order. <\/p>\n
Cointelegraph has reached out to SCB for clarity but has not received a response by the time of publication.\u00a0<\/p>\n
The commission’s order would have been made only two days after the commission froze FDM\u2019s assets on Nov. 10, suspended FTX\u2019s registration in the country, and stripped the FTX directors of their power. <\/p>\n
At the time, it also stated that FDM\u2019s assets could only be moved by obtaining the approval of a provisional liquidator appointed by the Supreme Court.<\/p>\n
Related: <\/em><\/strong>FTX reportedly hacked as officials flag abnormal wallet activity<\/em><\/strong><\/a><\/p>\n
The FTX bankruptcy drama has continued to unfold over the last week. <\/p>\n
On Nov. 15, FDM filed<\/a> for Chapter 15 bankruptcy protection in a New York-based court in order to seek U.S. recognition of the Bahamian liquidation proceedings. <\/p>\n
Brian Simms, the court-appointed provisional liquidator overseeing the bankruptcy proceedings<\/a> of FTX Digital Markets in the Bahamas argued in the filing that FDM wasn\u2019t authorized to file for Chapter 11 in the United States<\/a>, and rejected the validity of the filing. <\/p>\n