The Bahamas Securities and Exchange Commission claims that the continued “hack attempts” of FTX’s digital assets prove that they made the right decision to take control of the exchange’s assets. On November 12.
In a release of November 23, The commission said that the fact that FTX’s “systems were compromised, and continued to face further hacking attempts, reinforces the wisdom of the commission’s swift action to secure these digital assets.”
On the same day that FTX filed for bankruptcy, on November 11, the cryptocurrency community began reporting some $266.3 million worth of outflows from FTX-associated wallets. By November 12, outflows had skyrocketed to more than $650 million.
Blockchain analysts have suggested that USD 477 million is suspected to have been stolen, while the rest was moved to secure storage by FTX itself.
In his last statement, The commission said that although it suspended FTX Digital Markets’ (FDM) license to conduct business and stripped its directors of their power on November 10, this was not enough to protect FDM’s customers and creditors.
The commission further explained that due to the “nature of digital assets” and “the risks associated with hacking and compromise,” it sought an order from the Supreme Court to transfer all of FTX’s digital assets to the commission for “safekeeping.” .
The latest statement reinforces recent analysis by blockchain analytics firm Chainalysis, and Twitter crypto sleuth ZachXBT, who said that On-chain evidence suggests the Bahamian regulator’s actions are unrelated to the alleged “FTX hacker.”
The commission has also attacked the emergency motion filed on November 17 by FTX Trading Limited, which accused the “government of the Bahamas” of “directing unauthorized access to debtors’ systems” after the start of the bankruptcy filing from Chapter 11.
“It is unfortunate that in the Chapter 11 filings, the new CEO of FTX Trading Ltd. misrepresented this timely action through the intemperate and inaccurate allegations made in the transfer motion,” the Commission said.
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