Bahama Regulator Safeguards $3.5 Billion in FTX Customer Assets

According to a press statement issued by the Securities Commission of the Bahamas on early Friday morning Asian-Pacific time, the SCB has seized custody of FTX deposits worth more than $3.5 billion.

About $372 million worth of tokens were taken from the exchange shortly after FTX declared bankruptcy by an unidentified individual who is believed to be an outside hacker. The Commission stated in its statement that it determined there was a significant risk of imminent dissipation as to the digital assets under the custody or control of FTX to the detriment of its customers and creditors in light of media reports of a cyberattack on FTX and potential looting of FTX-controlled wallets by former employees.

The statement said that assets will be retained until the Bahamas Supreme Court orders the Commission to transfer them to the clients and creditors who possess them. It was also revealed that the $3.5 billion worth in tokens that were transferred were no longer accessible to FTX founders Sam Bankman-Fried and Gary Wang.

The SCB concluded by reiterating its intentions in the case that is under the spotlight from around the world:

“The Commission will continue to conduct a comprehensive and diligent investigation into the causes of FTX’s failure, act in accordance with directions issued by the Supreme Court of The Bahamas, collaborate with other supervisory authorities, and take such further actions as needed to preserve the assets of FTXDM and to safeguard the interests of customers and creditors of FTXDM.”