Recent FTX hacks prove it was right to ‘secure’ its assets, says Bahamian regulator | The Financial Express

Recent FTX hacks prove it was right to ‘secure’ its assets, says Bahamian regulator

In its most recent statement, the commission claimed that although it had suspended FTX Digital Markets’ (FDM) ability to conduct business and removed its directors’ authority.

Recent FTX hacks prove it was right to ‘secure’ its assets, says Bahamian regulator
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The Bahamas’ Securities Commission claims that the ongoing “hacking attempts” on the digital assets of FTX demonstrate that they were right to seize control of the exchange’s assets on November 12, as reported by Cointelegraph.

The fact that FTX’s “systems were compromised, and that they continue to face new hacking attempts – reinforces the wisdom of the commission’s prompt action to secure these digital assets,” the commission said in a statement on Nov. 23.

On November 11, the same day that FTX declared bankruptcy, the crypto community started to notice outflows on FTX-related wallets totaling about $266.3 million. According to blockchain experts, $477 million is thought to have been stolen, with the remaining money being transferred by FTX to secure storage, Cointelegraph stated.

In its most recent statement, the commission claimed that although it had suspended FTX Digital Markets’ (FDM) ability to conduct business and removed its directors’ authority on November 10, these actions were insufficient to safeguard FDM’s clients and creditors.

The commission added that it sought a ruling from the Supreme Court authorising the transfer of all digital assets from FTX to the commission for “safekeeping” because of the “nature of digital assets” and “the risks associated with hacking and compromise.”

The commission also reacted angrily to FTX Trading Limited’s emergency motion from November 17 in which the company accused the “Bahamian government” of “directing unauthorised access to the Debtors’ systems” following the start of Chapter 11 bankruptcy filings.

(With insights from Cointelegraph)

Also Read: Binance’s Zhao flags possible one billion dollars for distressed assets – Bloomberg News

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First published on: 24-11-2022 at 15:55 IST