Bahamas regulator values blocked FTX assets at $3.5 billion

The Bahamas Securities Commission (SCB) took custody of the local FTX unit’s deposits for safety reasons. On November 12, the digital assets were worth more than $3.5 billion, сообщило ведомство.

On November 11, the SCB suspended the FTX Digital Markets (FTXDM) license and blocked the company’s funds. On that day the exchange and a number of affiliated entities filed for bankruptcy in the United States. The Bahamas-registered firm did not join the filing.

Soon after this, there were reports of unauthorized withdrawals from FTX assets worth more than $400 million.

The SCB explained that, in light of media reports about a potential hack or possible insider actions, it transferred the blocked funds to its own digital wallets.  

“The Commission has consistently taken the steps necessary to protect the clients of FTXDM and the public interest in carrying out its duties,” the statement said.

Earlier SCB rejected FTX’s claims regarding unauthorized access to the exchange’s subsidiary assets. The Commission noted that it had the backing of the Bahamas Supreme Court.

The regulator will also decide on the further transfer of client and creditor funds of FTXDM either to the exchange’s clients and creditors or to the trustees for the U.S. debtors. The Commission stressed that it does not prioritise the interests of local users of the exchange.

Earlier, the SCB received information about possible fraud by FTX two days before its bankruptcy filing.

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