The Commission stated that it will keep the assets in its digital wallet until it becomes clear how the FTX bankruptcy will be handled.
The Move Made After the Bankruptcy Filing
The trial process of the FTX collapse, which has deeply damaged the crypto and blockchain sector, is still ongoing. While tension about the role of Bahamian regulators continued during the FTX’s trial process, a statement came from the Bahamas Securities Commission.
The Bahamas Securities Commission has confirmed that FTX, which it seized in early November shortly after the failed crypto exchange filed for bankruptcy, still holds assets worth $3.5 billion.
The Securities Commission stated that it will keep the assets it holds in its digital wallets until there is clarity about distributing them to the customers and creditors of the defunct exchange by the Supreme Court of the Bahamas, or how the firm’s bankruptcy will be handled.
In addition, the Commission stated that the imminent distribution of digital assets poses a risk due to the reports circulating about the cyber attack on FTX last month. As a justification for this, the reports in question showed that FTX employees could not access the company’s Amazon Web Services system.
About the Ongoing Court Process
In early December 2022, lawyers representing FTX asked the judge at the court held in Delaware not to continue the process in accordance with the laws of the Bahamas, but in accordance with US law. Additionally, it petitioned Bahamian regulators to deny access to cloud-based systems containing data from Google, Slack, and Amazon.
The lawyers said: ‘This access poses huge and unjustified security risks to the Debtors, their assets, the client and their creditors, as no basis has been identified to justify the Bahamian government’s request for discovery.’
In addition, FTX’s lawyers stated that they received nothing but a stone wall from this case. In addition, they noted that in their discussions so far with the regulatory agencies of the island states, they have also completely refused to provide any information, including the accounting of the assets being diverted.
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