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The transfer of FTX’s digital assets was mandated by the Bahamas’ securities regulator

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Security commission of Bahamas

The Bahamian Securities Regulator has clarified that on November 12, it instructed FTX to transfer its digital assets to a wallet that belonged to the commission.

The Securities Commission of The Bahamas (SCB) announced that on November 12 it had mandated the transfer of all digital assets of FTX Digital Markets (FDM) to a digital wallet it owns.

The SCB claimed in a statement dated November 17 that it had moved the assets to a “digital wallet controlled by the Commission, for safekeeping,” in accordance with the authority of a Supreme Court order.

SCB defended its decision from last week, saying that it was “necessary to take urgent interim regulatory action to protect the interests of clients and creditors.”

The most recent information might provide some insight into some financial movements that were noticed last week.

Analysts estimate that $663 million was lost as a result of a number of suspicious transactions in wallets connected to FTX and FTX.US on November 11.

While the remaining funds were thought to have been transferred by FTX to secure storage, $477 million were suspected to have been stolen.

However, the SCB statement made no mention of the quantity of FDM’s digital assets that were moved as a result of their order.

The order would have been issued just two days after the commission on November 10 froze the assets of FDM, suspended FTX’s registration in the nation, and deposed the FTX directors of their authority.

It also specified at the time that any transfer of FDM’s assets required approval from a provisional liquidator appointed by the Supreme Court.

To request U.S. recognition of the Bahamian liquidation proceedings, FDM filed for Chapter 15 bankruptcy protection in a court in New York on November 15.

In his filing, Brian Simms, the court-appointed provisional liquidator in charge of FTX Digital Markets’ bankruptcy proceedings in the Bahamas, argued that FDM was not authorized to file for Chapter 11 in the United States and rejected the filing’s legality.

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