Financial authorities in Bahamas have seized digital assets belonging to cryptocurrency exchange platform, FTX.
The Securities Commission of The Bahamas said on Thursday it had transferred the digital assets of FTX Digital Markets (FDM) to a digital wallet under its control for “safekeeping”.
In a press release, the commission said it made the order under existing authorities that allow for it to take action if it needs to protect clients or their funds.
The release reads: “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.
“Urgent interim regulatory action was necessary to protect the interests of clients and creditors of FDM,” the commission added.
“Under the Digital Assets and Registered Exchanges Act, 2020 (“DARE Act”), the Commission has the authority to apply for a judicial order to protect the interests of clients or customers of a registrant of the Commission under the DARE Act.”
“Over the coming days and weeks, the Commission will engage with other regulators and authorities, in multiple jurisdictions, to address matters affecting the creditors, clients and stakeholders of FDM globally to obtain the best possible outcome,” it said.
FTX filed for bankruptcy on Friday, Nov. 11, in a chaotic filing which mistakenly labeled a number of companies not part of the FTX umbrella as also filing for bankruptcy.
On the evening of Nov. 11 and into the early hours of Nov. 12, the company appeared to be hacked, with hundreds of millions of dollars worth of crypto flowing out of FTX’s wallets. Some of these transactions were tied to profane comments about former FTX CEO Sam Bankman-Fried.