FTX Digital Markets’ assets have been transferred to a digital wallet controlled by the Securities Commission of the Bahamas on November 12, the commission announced on Twitter.
The move is for “safekeeping”
On Thursday, the Bahamas Securities Commission said the digital assets of FTX Digital Markets (FDM) had been transferred to a digital wallet under its control for “safekeeping.”
“Took the action of directing the transfer of all digital assets of FTX Digital Markets Ltd. (“FDM”) to a digital wallet controlled by the Commission, for safekeeping,” cited the letter.
Securities Commission of The Bahamas Assumes Control of Assets of FTX Digital Markets Ltd. pic.twitter.com/IzW4PGZSJm
— Securities Commission of The Bahamas (@SCBgov_bs) November 18, 2022
Additionally, the regulator said the action was taken on Saturday to protect clients’ and investors’ interests.
“Urgent interim regulatory action was necessary to protect the interests of clients and creditors of FDM.”
FTX filling the chapter 15
In the US Bankruptcy Court for the Southern District of New York, FTX DM filed for Chapter 15 bankruptcy protection, a protection available to companies that operate primarily abroad.
“The filing of the Chapter 15 Case without advance notice and in the SDNY is a blatant attempt to avoid the supervision of this Court and to keep FTX DM isolated from the administration of the rest of the Debtors, which constitute the vast majority of the remainder of the FTX group,” according to the FTX filing.
“Under normal circumstances, that would be inappropriate and grounds for transfer to this Court. But these are not normal circumstances.”
According to bankruptcy attorneys hired by Bankman-Fried last week, the company is attempting to tie assets in the Bahamas up in its US Chapter 11 bankruptcy case.
Meanwhile, John Ray, the new CEO of FTX, said in a court filing on Thursday that he has never seen such a “complete failure of corporate controls and a complete absence of trustworthy financial information”.
THE FTX FIRST DAY DECLARATION
New CEO John Ray is scathing about Sam Bankman-Fried's management.
— kadhim (＾ｰ^)ノ (@kadhim) November 17, 2022
“THE FTX FIRST DAY DECLARATION. New CEO John Ray is scathing about Sam Bankman-Fried’s management. “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information,” tweeted @kadhim, a reporter at Financial Times.