Securities Commission of Bahamas Holds $3.5B in FTX Client Assets

Bulletpoints:
• 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 FTX and its affiliates filing for bankruptcy in the US.
• The commission found a considerable risk of impending dissipation regarding the digital assets, which led it to seek and receive a court injunction to protect them.

The Bahamas Securities Commission has revealed that it is currently holding more than $3.5 billion in FTX client assets in an effort to ensure their safekeeping and protection. This comes after the crypto exchange FTX and its affiliates filed for bankruptcy in the United States earlier this year.

The commission first became aware of a potential risk associated with the digital assets held by FTXDM when it was notified of a cyberattack that took place on the exchange earlier this year. The attack resulted in the theft of at least $372 million worth of crypto. In light of this incident, the commission deemed it necessary to take measures to protect the assets held by FTXDM, and sought and received a court injunction to do so.

The Bahamas Securities Commission is currently in the process of temporarily holding the FTX client assets until the Bahamas Supreme Court issues an order to return the funds to customers and creditors, or to the liquidation administrator. This is being done in order to ensure the safekeeping of the digital assets and to prevent any potential dissipation that could be detrimental to FTXDM’s clients and creditors.

In addition to holding the client assets, the commission is also in the process of conducting a full investigation into the events that led to the cyberattack and subsequent bankruptcy filing. The commission is also working to ensure that all FTX customers receive the funds that are due to them, and that the necessary steps are taken to secure the digital assets for the future.

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