The Securities Commission of The Bahamas (Commission) on Nov. 12 ordered the transfer of all digital assets of FTX Digital Markets (FDM) to a digital wallet controlled by the Commission, for “safekeeping,” in an announcement on Nov. 17.
See related article: Who is exposed to FTX? A running compilation on a rapidly moving target
Fast facts
- “Urgent interim regulatory action was necessary to protect the interests of clients and creditors of FDM,” the Commission said in a statement on Thursday.
- The Commission will also collaborate with other authorities and regulators to address matters affecting creditors, clients and stakeholders of FDM.
- FTX filed for bankruptcy on Nov. 11, which has since affected several crypto businesses including Genesis, BlockFi and AAX exchange.
- John J. Ray III, the new CEO of FTX, said in a court filing on Thursday that FTX was controlled by “a very small group of inexperienced, unsophisticated and potentially compromised individuals.”
- Ray also pointed out that in the Bahamas, where FTX is headquartered, corporate funds of the FTX Group were used to purchase homes and other personal items for employees and advisors.
- See related article: Crypto winter may last until end of 2023: Coinbase research