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Bahamian regulator claims it was right to ‘secure’ its assets

  • News
  • November 24, 2022
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The Securities Commission of The Bahamas’ decision on the continued “hacking attempts” on FTX’s digital assets prove they made the right decision to take control of the exchange’s assets on Nov. 12.

In an announcement on Nov. 23, the commission said the fact that FTX’s “systems were compromised, and that they continue to face new hacking attempts – reinforces the wisdom of the commission’s prompt action to secure these digital assets.”

Blockchain analysts have suggested that $477 million is alleged to have been stolen, while the remainder was moved to secure storage by FTX themselves.

In its up-to-date announcement, the commission said while it suspended FTX Digital Markets (FDM) license to conduct business and exposed its directors of their power on Nov. 10, this was not sufficient in protecting customers and creditors of FDM.

The commission further clarified that due to the “nature of digital assets” and “the risks associated with hacking and compromise,” it sought an order from the Supreme Court to hand over all digital assets from FTX to the commission for “safekeeping.”

The latest statement emphasizes the latest analysis from blockchain analytics firm Chainalysis, and Twitter crypto investigator ZachXBT, who said that on-chain evidence suggests that the actions of the Bahamian regulator are not related to the alleged “FTX hacker.”

The commission has also impacted the Nov. 17 emergency motion by FTX Trading Limited, which called out the “Bahamian government” for “directing unauthorized access to the Debtors’ systems” after the commencement of Chapter 11 bankruptcy filings.

The Commission said, “It is unfortunate that in Chapter 11 filings, the new CEO of FTX Trading Ltd. misrepresented this timely action through the intemperate and inaccurate allegations lodged in the Transfer Motion.”


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