Bahamian Regulator Claims It Ordered Sam Bankman-Fried To Move FTX Assets To Government Wallets

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Sam Bankman-Fried; Photo Source: Vox
The official statement released by the Bahamian authorities reads, “The Securities Commission of the Bahamas took the action of directing the transfer of all digital assets of FTX Digital Markets Ltd. to a digital wallet controlled by the Commission.”

The Securities Commission of the Bahamas (SCB) revealed that the agency instructed FTX's Ex-CEO, Sam Bankman-Fried, to transfer the platform's assets to government wallets on November 12.

Last week, FTX was targeted by a hack that resulted in crypto tokens worth “hundreds of millions of USD” being transferred out of the platform. FTX’s latest court filing suggests that a portion of these assets was transferred to SCB’s wallets.

As per the filing, the SCB had ordered Sam Bankman to provide “unauthorized access” to the FTX wallets. The authorities then transferred the assets under FTX’s ownership to the SCB's wallets for safekeeping.

“[There exists] credible evidence that the Bahamian government is responsible for directing unauthorized access to [FTX’s] systems for the purpose of obtaining digital assets of [FTX].”

The SCB has confirmed these allegations. The authorities added that they seized FTX’s assets to protect the interests of clients. Furthermore, the SCB will be in talks with other regulatory agencies over the coming weeks “to address matters affecting the creditors.” 



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FTX’s attorneys also accused Sam Bankman of collaborating with the SCB to move the firm’s assets to the agency’s wallets. They added,

“Mr. Bankman-Fried appears to be supporting efforts by the JPLs to expand the scope of the FTX DM proceeding in the Bahamas to undermine these Chapter 11 Cases.”

Written by
Ayush Pande
The official statement released by the Bahamian authorities reads, “The Securities Commission of the Bahamas took the action of directing the transfer of all digital assets of FTX Digital Markets Ltd. to a digital wallet controlled by the Commission.”

The Securities Commission of the Bahamas (SCB) revealed that the agency instructed FTX's Ex-CEO, Sam Bankman-Fried, to transfer the platform's assets to government wallets on November 12.

Last week, FTX was targeted by a hack that resulted in crypto tokens worth “hundreds of millions of USD” being transferred out of the platform. FTX’s latest court filing suggests that a portion of these assets was transferred to SCB’s wallets.

As per the filing, the SCB had ordered Sam Bankman to provide “unauthorized access” to the FTX wallets. The authorities then transferred the assets under FTX’s ownership to the SCB's wallets for safekeeping.

“[There exists] credible evidence that the Bahamian government is responsible for directing unauthorized access to [FTX’s] systems for the purpose of obtaining digital assets of [FTX].”

The SCB has confirmed these allegations. The authorities added that they seized FTX’s assets to protect the interests of clients. Furthermore, the SCB will be in talks with other regulatory agencies over the coming weeks “to address matters affecting the creditors.” 



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


FTX’s attorneys also accused Sam Bankman of collaborating with the SCB to move the firm’s assets to the agency’s wallets. They added,

“Mr. Bankman-Fried appears to be supporting efforts by the JPLs to expand the scope of the FTX DM proceeding in the Bahamas to undermine these Chapter 11 Cases.”

Written by
Ayush Pande