Bahamas Regulator Holds $3.5B Worth of FTX’s Assets

• Bahamas Securities Commission said it is temporarily holding FTX assets worth $3.5 billion.
• The commission transferred all digital assets under the control or custody of FTXDM or its principals to wallets controlled by the SCB on Nov. 12.

The Bahamas Securities Commission (SCB) is currently in possession of FTX assets worth $3.5 billion. The assets were transferred to the SCB on November 12, shortly after FTX filed for chapter 11 bankruptcy protection in the United States.

The SCB took possession of the assets after receiving information from FTX founder Sam Bankman-Fried that the company was under cyberattack. The SCB said that it took the action to protect the assets from being dissipated or lost.

The SCB has said that it will distribute the assets to creditors and customers of FTX when the Bahamas Supreme Court directs it to do so. The regulator has also said that it did not direct FTX to prioritize withdrawals for Bahamas-based clients.

FTX has accused the SCB of unauthorized access to its systems and of interfering with its operations. The SCB has denied these allegations.

The collapse of FTX has raised questions about the regulation of cryptocurrency exchanges. The SCB has said that it is working to strengthen its regulations in order to protect investors.

The collapse of FTX is a reminder of the risks associated with cryptocurrency investing. Cryptocurrencies are a volatile asset class, and there is always the risk of fraud and manipulation.

Investors should carefully consider the risks before investing in cryptocurrencies. They should also do their due diligence on the exchanges they are investing in.

The SCB has said that it will follow the instructions of the Bahamas Supreme Court when it comes to distributing the assets. The court will likely consider the claims of creditors and customers before making a decision.

The collapse of FTX is a major setback for the cryptocurrency industry. It is important for regulators to take steps to protect investors and to ensure that the industry is transparent and fair.