The regulatory authority claimed in a statement that the Bahamian regulator intervened due to worries about the security of the assets under FTX’s control.
The Bahamian Securities Commission (BSC) stated that as of Nov. 12, it has acquired control of FTX deposits worth more than $3.5 billion in a press release issued late Thursday.
An unknown actor believed to be an external hacker stole tokens from the exchange valued at roughly $372 million not long after FTX declared bankruptcy.
The Commission stated in its media statement that it “determined that there was a significant risk of imminent dissipation as to the digital assets under the custody or control of [FTX] to the detriment of its customers and creditors” in light of media reports of a cyberattack on FTX and potential looting of FTX-controlled wallets by former employees.
The statement said that assets will be retained until the Bahamas Supreme Court orders the Commission to transfer them to the clients and creditors who possess them.
The $3.5 billion in tokens that were moved, according to the Commission, were no longer accessible to FTX founders Sam Bankman-Fried and Gary Wang.
In the media statement, the Commission reiterated that it did not direct FTX to prioritize the withdrawals of Bahamas-based clients. The Commission underlined in the media release that it did not order FTX to give Bahamas-based clients’ withdrawals top priority.