– The Securities Commission of the Bahamas (SCB) has seized $3.5 billion worth of digital assets from FTX Digital Markets, the Bahamian subdivision of the defunct crypto exchange.
– The assets were seized on the 12th of November, a day after the former crypto behemoth filed for Chapter 11 bankruptcy.
– The Bahamian regulator has stated that the assets are held in custody for safekeeping, with the intent of returning them to defrauded investors as the courts see fit.
The Securities Commission of the Bahamas (SCB) recently revealed that it had seized $3.5 billion worth of digital assets from FTX Digital Markets, the Bahamian subdivision of the defunct crypto exchange. This move was taken on the 12th of November, a day after the former crypto behemoth filed for Chapter 11 bankruptcy.
The extent of FTX’s fraudulent activities were only uncovered after the bankruptcy filing. As soon as the SCB learned of the situation, it decided to take immediate action to protect the investors and seized the assets with the intent of returning them to defrauded investors as the courts see fit.
The SCB released a statement following the asset seizure, saying that it “will continue to do everything in its power to protect the interests of investors, including securing and protecting assets, as well as bringing those responsible for any wrongdoing to justice.”
The regulator also added that it is working closely with the relevant law enforcement agencies to ensure that the assets are not moved out of the country before being returned to the rightful owners.
The Bahamas is not the only jurisdiction to have taken action against the FTX. The Financial Industry Regulatory Authority (FINRA) in the United States has frozen the exchange’s accounts and is conducting an investigation into its activities.
It remains to be seen what the outcome of these investigations will be, but it is clear that the Bahamas is taking the lead in protecting its investors and ensuring that no one is able to get away with fraudulent activities. The SCB’s swift and decisive action has certainly sent a strong message to any potential wrongdoers out there.
