Remaining FTX’ funds are now under the custody of the Bahamian Securities Commission

The Bahamian Securities Commission has taken custody of $3.5 Billion worth of crypto assets from the FTX exchange.

FTX was a 2nd ranked crypto trade platform, which was providing services globally. The headquarter of this exchange is in the Bahamas. Initially FTX headquarter was in Hong Kong but due to strict crypto regulatory policies, the exchange shifted its headquarters to the Bahamas. Due to mismanagement of the customers’ fund, FTX collapsed & finally filed for bankruptcy in a US bankruptcy court on 11 Nov. 

On 29 Dec, The Bahamian Securities Commission (BSC) informed through a press release that the agency has taken custody of FTX deposits valued at more than $3.5 billion. 

$3.5 Billion is the worth of the FTX customer’s Crypto assets as of 12 Nov 2022. 

BSC noted that the funds under the control of the FTX exchange were not safe for customers & creditors. The agency stated:

“determined that there was a significant risk of imminent dissipation as to the digital assets under the custody or control of (FTX) to the prejudice of its customers and creditors.”

The press release confirmed that BSC will hold the funds until the Bahamas Supreme Court will order to release the funds to FTX customers, who are the actual owner of these funds. 

Hack attack on FTX exchange

On 11 Nov, FTX filed for bankruptcy along with more than 100s of its affiliated companies. 

Just after filing for bankruptcy, Exchange confirmed on its Telegram channel that its exchange wallet was compromised and a hacker was able to steal $372 million worth of crypto assets from the exchange. 

Few media reports claimed that FTX never faced any kind of hack attack, after the bankruptcy filing. And suspicious Crypto transactions were part of the former or current corrupt employee of the FTX exchange.

Read also: China will welcome the NFTs marketplace on 1 Jan 2023