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Authorities in the Bahamas have taken control of cryptocurrency assets held by a unit of bankrupt exchange FTX.
The Securities Commission of The Bahamas announced Thursday night it has directed the transfer of all digital assets of FTX Digital Markets, The Bahamas-based FTX unit that filed for Chapter 15 bankruptcy protection on Tuesday.
The regulator said those assets are being transferred to a digital wallet controlled by the Bahamas regulator for “safekeeping.”
“Urgent interim regulatory action was necessary to protect the interests of clients and creditors” of FTX Digital Markets, the agency said.
The move comes hours after the former Enron lawyer overseeing FTX’s bankruptcy made a series of alarming revelations in a court filing about the chaos at the crypto exchange.
The filing painted the picture of a crypto empire that was massively mismanaged and potentially fraudulent , including unreliable financial statements, the mishandling of confidential data and the use of corporate funds to buy homes for employees in the Bahamas.
Last weekend, the Royal Bahamas Police Force announced it is investigating potential criminal misconduct surrounding the implosion of FTX, which moved its headquarters to The Bahamas last year.
The Securities Commission of the Bahamas said it will consult with other regulators and authorities around the world to get the “best possible outcome” for the creditors, clients and stakeholders of FTX.
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