The Bahamas Securities Commission revealed on Nov. 18 that on Nov. 12, it directed FTX to transfer digital assets under its control to the Commission’s wallet.
Securities Commission of The Bahamas Assumes Control of Assets of FTX Digital Markets Ltd. pic.twitter.com/IzW4PGZSJm
— Securities Commission of The Bahamas (@SCBgov_bs) November 18, 2022
The directive, according to the regulator, was intended to “safeguard” the assets and “was necessary to protect the interests of clients and creditors” of the bankrupt exchange.
According to a court filing, FTX sent assets to Bahamas authorities
According to FTX’s Nov. 17 court filing, it has recorded and verified text evidence that the Bahamas regulators directed the unauthorized access and withdrawal from the bankrupt exchange.
According to the filing, the Nov. 13 events were orchestrated by former CEO Sam Bankman-Fried and CTO Gary Wang. According to the exchange, the assets were “custodied on FireBlocks under Bahamian government control.”
“The Debtors thus have credible evidence that the Bahamian government is responsible for directing unauthorized access to the Debtors’ systems for the purpose of obtaining digital assets of the Debtors—that took place after the commencement of these cases.”
FTX also filed a complaint in New York against the liquidators appointed by the Bahamas government. The liquidators had filed a Chapter 15 petition in a New York court, asking for control of the proceedings in the Bahamas.
The Chapter 15 filing should be moved from New York to Delaware, according to FTX, to avoid “potentially inconsistent opinions, duplication of efforts, and unnecessary expense.”
FTX also claimed that the liquidators appointed by the Bahamas failed to mention its intention to file a Chapter 15 case in a new court in the United States.
The Bahamas regulator had previously stated that it had not directed FTX to priorities the withdrawal of Bahamian assets.
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