The Securities Commission of The Bahamas Confirms They Seized Digital Assets of FTX's Bahamas Unit After Bankruptcy Declared in US
Bankman-Fried and FTX co-founder Gary Wang made "unauthorized" transfers at the direction of the Bahamian government while "effectively in the custody of Bahamas authorities," according to the filing.
- The regulator said on Thursday it had ordered the transfer of all assets of FTX Digital Markets Ltd to a digital wallet it controlled for safekeeping.
"Urgent interim regulatory action was necessary to protect the interests of clients and creditors of FDM," the commission said in a statement.
- FTX was caught off-guard when assets were transferred on November 13 and initially believed that it had been hacked, according to its court filing.
- While investigating the hack, FTX learned that Bankman-Fried and FTX co-founder Gary Wang made "unauthorized" transfers at the direction of the Bahamian government while "effectively in the custody of Bahamas authorities," according to the filing.
- FTX accused Bankman-Fried of working with the Bahamas liquidators to "undermine" the U.S. bankruptcy case and shift assets overseas.
- Bankman-Fried has said that he regrets filing for Chapter 11 in the U.S. and wants to "win a jurisdictional fight" to move the bankruptcy proceedings out of Delaware.
- Bahamas regulators said Thursday that FTX Digital is being liquidated in the Bahamas and is not a part of the U.S. bankruptcy proceeding that includes parent company FTX Trading and more than 100 affiliated companies.
