The authorities of the Bahamas arrested FTX Digital Markets assets

The authorities of the Bahamas arrested FTX Digital Markets assets

On November 12, the Bahamas Securities Commission transferred all the FTX Digital Markets (FDM) assets to the wallet controlled by it.

Securities Commission of the Bahamas Assums Control of Assets of FTX Digital Markets Ltd. Pic.Twitter.COM/IZW4PGZSJM

– Securities Commission of the Bahamas (@scbgov_bs) November 18, 2022

In the evening of November 11, an unauthorized withdrawal of more than $ 477 million from the platform for third -party addresses occurred. Some of them were blocked by Tether and Kraken.

The main legal adviser of FTX Rain Miller announced “Investigation of anomalies with movements on wallets associated with the consolidation of balance between exchanges”. The head of Sam Bankman-Fried called the incident “Haker attack”.

“Urgent temporary regulatory action was necessary to protect the interests of customers and creditors [FDM]”, – says in the statement of the commission.

On November 15, FTX Digital Markets submitted a statement to the Court of the Southern District of New York in accordance with Chapter 15 of the United States Code of Bankruptcy. The procedure can protect FDM from confiscation of assets in the territory of the states during the liquidation in the Bahamsk Islands.

Four days before, the maternal company FTX, ALAMEDA Research and about 130 more affiliated firms filed a bankruptcy statement to the Court of Delaware.

“Filing an application for chapter 15 without prior notice to SDNY is an egregious attempt to avoid the supervision of this court and isolate FDM from administration by other debtors. The latter make up the vast majority of the rest of the group of companies “, – the lawyers of the exchange reacted.

According to experts attracted by FTX, Bankman-Fried obviously “supports the efforts […] to expand the coverage of the FDM trial on the Bagams, to undermine the process in chapter 11 and transfer debtors to the FDM accounts controlled by the Bahamas government”.

Earlier, Bankman-Fried expressed regret on the submission of FTX bankruptcy proceedings. He stated that he should continue to search for financing. This would keep the chances of “restoring financial health of customers after a month”.

The ex-ceo of the company admitted that he intends to “win a judicial battle against Delaware, so that the trials are on Bagama”.

“Thus, debtors have reliable evidence that the Bahamas government is responsible for unauthorized access to debtors’ systems in order to obtain their digital assets”, – says in a statement of lawyers.

The Bahamas Securities Commission did not agree with such accusations and announced readiness to work with other regulators to solve the issues related to bankruptcy issues.

Recall, on November 15, WSJ announced the plans of Bankman-Frida to attract funding, despite the submission of FTX bankruptcy claims. According to the sources of the publication, the funds will be sent for compensation for damage to users.

On November 16, it became known that a group of American investors filed a lawsuit against Bankman-Fried.

Lawyers surveyed by Fortune said the US Ministry of Justice has everything necessary to initiate a criminal case against Bankman-Frid and other leaders of the bankrupt exchange.

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