• The Securities Commission of the Bahamas is temporarily holding more than $3.5 billion in FTX client assets.
• The assets were given to the commission on Nov.12. following the filing for bankruptcy by FTX and its affiliates.
• The commission found a considerable risk of impending dissipation regarding the digital assets in FTXDM’s custody or control, which would be detrimental to its clients and creditors.
The Bahamas Securities Commission recently revealed that it is holding more than $3.5 billion in assets on behalf of FTX customers. The assets were given to the commission after FTX and its affiliates declared bankruptcy in the United States and FTX’s Bahamas headquarters was closed.
The commission took the decision to take control of the assets after it found a considerable risk of impending dissipation regarding the digital assets in FTXDM’s custody or control, which would be detrimental to its clients and creditors. The commission explained that the assets were taken in order to protect them from any potential losses that could be incurred by the customers if the assets were left in FTX’s hands.
The commission is currently holding the assets until the Bahamas Supreme Court orders it to return the funds to customers and creditors, or the liquidation administrator. This decision has been met with approval by many FTX customers, as it will ensure that their funds are safe and secure. The commission has also indicated that the theft of at least $372 million worth of crypto during a cyberattack on the defunct exchange ultimately led to the decision to seize FTX customers‘ assets for safekeeping.
The Bahamas Securities Commission’s decision to take control of the assets is a good example of how financial regulators can protect customers from potential losses. It also shows the commitment of the commission to ensure that customers’ funds are safe and secure. As the commission awaits further instruction from the Bahamas Supreme Court, FTX customers can be reassured that their funds are in good hands.