Over $3.5 billion in crypto assets was transferred to the Bahamas’ Securities Commission just hours after FTX declared bankruptcy. The massive transfer has raised eyebrows and sparked speculation about the true nature of the financial collapse. Was this a calculated move to protect assets, or is there more to the story?
Don’t Worry, Trust Us
On Dec 29, 2022, the commission revealed that it was holding over $3.5 billion worth of crypto assets seized from FTX Digital Markets. According to the Commission, the funds were to be transferred into its control on November 12, 2022, for ‘safekeeping.’
“On 12 November 2022, the Commission, in the exercise of its powers as regulator acting under the authority of an Order made by the Supreme Court of The Bahamas, took the action of directing the transfer of all digital assets under the custody or control of FTXDM or its principals, valued at more than US$3.5 billion, based on market pricing at the time of transfer, to digital wallets controlled by the Commission, for safekeeping.”
The Commission further clarifies that FTX was getting a string of attacks around that time, and the employees’ access to the FTXDM AWS system was blocked. Fearing the risk of the remaining funds getting lost, the Commission obtained a court order to take control of the crypto assets.
This is new information that remained hidden from the public for over a month, as some went into depression over disappearing life savings. Investors are now suspicious of this move that was done in a rush and under wraps.
The Commission has promised to return the funds to the victims of the attack in due course.
At the time of transfer, the value of the assets was $3.5 billion; it may have well reduced by a significant amount by now due to the prevailing market conditions.
