The Bahamas Takes Full Control of FTX Digital Assets

By
Tobi Opeyemi Amure
Tobi
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Published November 18, 2022
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The Securities Commission of the Bahamas has taken control of cryptocurrency assets held by bankrupt exchange FTX.

Key Takeaways

  • The Securities Commission of The Bahamas (SCB) instructed Sam Bankman-Fried, the founder and former CEO of FTX, to move crypto assets to the regulator's wallet.
  • The SCB said its actions were based on the Supreme Court's order.
  • It's unclear when and how much funds were transferred to the regulator.

According to the Securities Commission of The Bahamas (SCB), it instructed Sam Bankman-Fried, the founder and former CEO of the bankrupt exchange, to move crypto assets to the regulator's wallet in order to protect creditors. The regulator asserted its action was under the approval of the Supreme Court of The Bahamas five days after seizing control.

"The Securities Commission of The Bahamas ('the Commission'), in the exercise of its powers as regulator acting under the authority of an Order made by the Supreme Court of The Bahamas, took the action of directing the transfer of all digital assets of FTX Digital Markets Ltd. ('FDM') to a digital wallet controlled by the Commission, for safekeeping," the release said. 

Although the commission made the announcement five days after placing the order, it is unclear why it did so. Furthermore, it is unclear when and how much funds were transferred. In the coming days, SCB plans to engage other regulators and authorities in different jurisdictions.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. Securities Commission of The Bahamas. ''Securities Commission of The Bahamas Assumes Control of Assets of FTX Digital Markets Ltd.''

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