$3.5B Crypto Asset Seizure from FTX

In a statement made by the Bahamas Securities Commission, it was indicated that $3.5 billion in digital assets from FTX’s Bahamian subsidiary, FTX Digital Markets, were transferred “in escrow” to digital wallets controlled by the commission.

The statement indicated that the transfer in question took place on November 12 and that the commission is temporarily holding the digital assets until the Bahamas Supreme Court instructs that they be turned over to customers and creditors or authorities.

The statement emphasized that there is a “significant risk of imminent loss” of assets under the control of FTX Digital Markets.

WHAT HAPPENED?

Cryptocurrency exchange FTX had started experiencing liquidity problems in early November after problems with rival and the world’s largest cryptocurrency exchange Binance.

It was announced that FTX filed for bankruptcy in the US on November 11, and the company’s CEO, Sam Bankman-Fried, also resigned. Sam Bankman-Fried was arrested in the Bahamas on December 12, following a US criminal complaint.

In the US, federal prosecutors had charged Bankman-Fried with various crimes, including fraud, violation of financial laws and money laundering. It was decided that Bankman-Fried, who was turned over to the United States on December 21, would be free on $250 million bail pending a hearing. (AA)