Bahamas Securities Regulator Takes Full Control of FTX's Digital Assets

The Bahamas Securities Commission has taken decisive action regarding the digital assets associated with FTX Digital Markets Limited (FDM), FTX's local subsidiary. This move aims to protect the interests of clients and creditors amidst the ongoing FTX crisis.

Bahamian regulators took control of digital assets worth $3.5 billion from FTX's local subsidiary in early November, a day after the cryptocurrency exchange filed for bankruptcy protection in the United States. This significant action highlights the proactive stance taken by the commission to safeguard assets within its jurisdiction.

Bahamas securities regulators said they seized digital assets valued at $3.5bn from FTX’s local operation in mid-November as the cryptocurrency exchange spiralled into turmoil. The urgency of the situation prompted swift and decisive intervention by the regulator.

The Securities Commission of The Bahamas has transferred all of FTX Digital Markets Limited’s (FDM) digital assets to a wallet that it controls. In a statement, the Commission outlined its commitment to preserving and managing these assets responsibly. The transfer ensures greater security and accountability.

This intervention follows the collapse of FTX, raising serious questions about the management and security of customer funds. The Bahamian authorities' actions are intended to minimize the impact of the FTX debacle on investors.

The Commission's control over these digital assets is a significant development in the ongoing legal and financial proceedings surrounding FTX. The future of these assets, and their distribution to creditors, remains subject to further investigation and legal processes.