The Securities Commission of The Bahamas says it seized $3.5 billion worth of cryptocurrency from bankrupt crypto exchange FTX.
In a media release late Thursday, the watchdog confirmed the total amount seized from FTX’s Bahamian subsidiary, FTX Digital Markets, and added that the funds were moved into its own digital wallets “for safekeeping.”
The funds were valued at more than $3.5 billion, based on market pricing at the time of transfer, according to the commission. The transfer took place on Nov. 12, the day after FTX filed for Chapter 11 bankruptcy protection in the U.S.
The Bahamian securities commission said the funds are being held on a “temporary basis” until it is directed by the Bahamas’ Supreme Court to deliver them to customers and creditors or to liquidators of the insolvency estate.
There was a “significant risk of imminent dissipation” of the assets under FTX Digital Markets’ control, it said.
After FTX filed for bankruptcy, it was targeted in a suspected hack that saw $477 million stolen from the firm’s crypto wallets.
