Bahamas Government Declares It Ordained SBF Hacking FTX
The Securities Commission of The Bahamas confirmed that Sam Bankman-Fried was ordered to transfer the assets of the exchange to the government.
Key TakeawaysSam Bankman Fried conducted the nine-figure FTX hack last week under the direction of the Securities Commission of The Bahamas.
FTX filed a motion to the court claiming that the Commission’s actions were “unauthorized.”
After converting FTX assets, the Bahamian government now holds one of the largest Ethereum holdings in the world.
Share this article. The Bahamian agency has become one of the largest holders of ETH after ordering the FTX hack. Bahamas Government Orders FTX Hack Sam Bankman-Fried was previously the main figurehead of the FTX collapse and was ordered by authorities to transfer hundreds of million dollars of crypto from FTX into a wallet owned by the Securities Commission of The Bahamas. In a Thursday press release, the Commission confirmed that it had ordered the transfer. In a Thursday press release, the Commission stated that on November 12, officials “took action to direct the transfer of all digital assets [FTX] into a digital wallet controlled and monitored by the Commission, to safekeeping.” It also noted that FTX was required to move the assets to “protect the interests of clients” and “to protect creditors.” FTX filed for Chapter 11 bankruptcy after suffering from a liquidity crisis and a bank run that shook the entire cryptocurrency ecosystem. After a ban on customer withdrawals, it was discovered that the exchange had a $9.4 million hole in its balance sheet. This was after it had loaned customer funds to Alameda Research (a trading firm founded by Bankman-Fried). FTX filed a November 12 statement claiming that the Bahamian government had “unauthorized access” to FTX’s system by directing Bankman-Fried the transfer of the funds. FTX was the victim of a “hack” that occurred on November 12. More than $600 million in digital assets were transferred to external wallets FTX. Ryne Miller, the US General Counsel, confirmed that some assets were placed in cold storage to “minimize damage” after the incident. After the assets had been transferred, they were exchanged for ETH. Blockchain security firm Beosin estimates the Bahamian authority has more than $330 million. This makes it the 35th largest Ethereum whale. The majority of the funds are currently stored in this Ethereum wallet. The court will decide whether the Commission responded appropriately, but the announcement has caused controversy within the crypto community. FTX filed that “the automatic stop has been flaunted” with the addition that “the government actor no less” was involved in the breach. According to U.S. bankruptcy law the automatic stay provided by Chapter 11 “a period of [when] all judgments, collection actions and repossessions are suspended.” It seems that the Commission and FTX did not understand this rule. Disclosure: The author of this article owned ETH and other cryptocurrency assets at the time of writing. Share this article. The information on this website or accessed through it is obtained from independent sources that we believe are accurate and reliable. However, Decentral Media, Inc. does not make any representations or warranties as to the timeliness, accuracy, completeness, or accuracy information on this website or accessed via it. Decentral Media, Inc. does not act as an investment advisor. We do not provide personalized investment advice or any other financial advice. This website’s information is subject to change at any time. The information on this website could become obsolete or incorrect. You may not be able to update any information that is outdated, incomplete or inaccurate. We also reserve the right to change any information that is incorrect, incomplete or outdated. If you need investment advice about an ICO, IEO or other investment, we strongly recommend that you consult a licensed financial advisor or other qualified financial professional. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.See full terms and conditions.Recommended News