FTX Customer Assets Worth $3.5B Seized By Bahamian Regulators

FTX customer assets worth more than $3.5 billion have been seized by Bahamian authorities.

iexlusivenews reports that the assets were transferred under their ownership for safekeeping, according to regulators.

This online news outlet understands that customers and creditors will receive the funds after the Bahamas Supreme Court approves its delivery.

According to the country’s markets regulator, FTX customer assets worth more than $3.5 billion have been temporarily seized by Bahamian authorities.

The assets were transferred to digital wallets under the control of regulators on November 12. Shortly after FTX filed for bankruptcy, according to a statement issued Thursday by the Bahamas Securities Commission.

The move was made to protect the assets, according to the regulator, after more than $370 million was reportedly stolen from the crypto exchange in an apparent cyber attack after the firm went bankrupt last month.

It also comes on the heels of reports that up to $2 billion in customer funds disappeared from the exchange after its founder and former CEO Sam Bankman-Fried quietly transferred large sums to FTX’s sister company Alameda Research.

These funds would then be used to invest in risky trades, venture capital, and lavish real estate purchases.

What You Should Know 

“The Commission determined that there was a significant risk of imminent dissipation as to the digital assets under the custody or control of FTXDM to the prejudice of its customers and creditors,” they said.

[the_ad id=”33485″]

“The digital assets transferred on 12 November 2022 to digital wallets under the exclusive control the Commission are being held by the Commission on a temporary basis. Until such time as The Bahamas Supreme Court directs the Commission to deliver them to the customers and creditors who own them,” they added. 

FTX and more than 130 of its affiliates declared bankruptcy last month, following a severe liquidity crisis and subsequent “run on the bank.”Resulting in a $8 billion loss of customer funds.

Bankman-Fried, once regarded as the crypto industry’s white knight, has since been charged with several counts of fraud and is currently under house arrest at his parents’ home.

However, iexclusivenews Nigeria reports that customers whose funds remain on the failed crypto exchange are now attempting to recover some of them.

They are allegedly losing money by selling their bankruptcy claims at deep discounts. In order to recoup their losses, they have also filed a class-action lawsuit against FTX.