Bahamas Regulator Holds $3.5B in FTX User Assets

Bahamas regulator is holding $3.5 Billion in user deposits.
The ruling for this action was made by the highest court in the nation.
Authorities in the Bahamas appointed liquidators to wind down FTX’s worldwide trading activity.

According to a press statement that was issued by the Bahamian Securities Commission (BSC) late on Thursday night, the BSC has seized custody of FTX deposits with a total value of more than $3.5 billion as of November 12. Notably, the ruling that allowed the regulator in the Bahamas to collect these cryptocurrencies came from the highest court in the nation.

Read CRYPTONEWSLAND on

google news

Additionally, the supervisor emphasized that it will continue to keep hold of the crypto assets. This would be until the order from the Supreme Court to restore them to the creditors and consumers of the defunct cryptocurrency exchange is carried out.

“The digital assets transferred on 12 November 2022 to digital wallets under the exclusive control of the Commission are being held by the Commission on a temporary basis, until such time as The Bahamas Supreme Court directs the Commission to deliver them to the customers and creditors who own them (or to the administrator of the liquidation),” the official press release stated.

In the same vein, at the beginning of this month, legal counsel for the cryptocurrency exchange FTX fought against a demand for the company’s internal documents in the Bahamas. They said that they “do not trust” the Bahamian government with data that may be used to steal assets from the failing firm.

Soon after the firm announced that it would be filing for bankruptcy, the authorities in the Bahamas, where the company’s headquarters were located, appointed liquidators to wind down FTX’s worldwide trading activity.

Read Also :

Godfrey Mwirigi

Godfrey Mwirigi is an enthusiastic crypto writer with an interest in Bitcoin, blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience in their day-to-day endeavors.