• The Securities Commission of the Bahamas is temporarily holding $3.5 billion in FTX customer assets until the Bahamas Supreme Court orders it to return the funds.
• The assets were given to the commission on Nov.12 after FTX and its affiliates filed for bankruptcy.
• The commission seized the assets to protect them from potential dissipation that would be detrimental to FTX’s clients and creditors.
The Securities Commission of the Bahamas has made headlines recently as it announced that it has taken possession of more than $3.5 billion in FTX customer assets. This decision was taken on November 12th, 2022, just after FTX, an exchange based in the Bahamas, filed for bankruptcy along with its affiliates. The announcement was made late Thursday, December 29th, 2022.
The commission was temporarily holding the digital assets until the Bahamas Supreme Court orders it to return the funds to customers and creditors, or the liquidation administrator. This decision was taken due to the theft of at least $372 million worth of crypto during a cyberattack on the defunct exchange. The commission feared that if these digital assets were not taken into custody, they could be subject to potential dissipation, which would be detrimental to FTX’s clients and creditors.
The Securities Commission of the Bahamas took a step towards protecting FTX customers’ assets and making sure that the funds are not misused. They sought and received a court injunction to protect digital assets while exercising its regulatory authority. The funds are now out of the reach of Bankman-Fried, former CTO and co-founder of FTX Gary Wang and anyone else associated with FTX.
The Commission is currently reviewing the customer assets to ensure that all the funds are accounted for. They are also looking into other fraudulent activities that may have taken place during FTX’s operations. The Commission is expected to issue further updates as the investigation progresses.