The Bahamas seizes $3.5 bn in FTX digital assets as ex-CEO faces trial

The US Attorney for the Southern District has charged eight counts against Bankman-Fried, including money laundering and securities fraud

FPJ Web DeskUpdated: Saturday, December 31, 2022, 11:33 AM IST
article-image
Sam Bankman-Fried | Image credit: Wikipedia

The government in The Bahamas has seized $3.5 billion in FTX digital assets, as its former CEO Sam Bankman-Fried faces a trial in the US.

The assets were taken over by the country's Securities Commission not long after the cryptocurrency exchange declared bankruptcy in the US in November, according to reports late on Friday.

In a statement, the Securities Commission of The Bahamas stated that it had taken the action of ordering the transfer of all digital assets held by FTXDM (FTX Digital Markets Ltd.) or its principals, valued at more than $3.5 billion at the time of transfer based on market prices, to digital wallets under the Commission's control for storage.

"While certain token protocols may require the simultaneous minting of new replacement tokens and the burning of old tokens to effect transfer, in no case did the process involve the creation of any additional tokens," it stated.

"The regulator determined that there was a significant risk of imminent dissipation as to the digital assets under FTXDM's custody or control to the detriment of its customers and creditors," the regulator said.

The Commission said it will continue to investigate the causes of FTX's failure, and take such further actions as needed to preserve the assets of FTXDM and to safeguard the interests of customers and creditors.

Bankman-Fried has been released on a $250 million bond in the US, "the largest-ever pretrial bond", amid his trial for committing fraud and other criminal charges.

He will face his next hearing in New York City on January 3, 2023.

The US Attorney for the Southern District has charged eight counts against Bankman-Fried, including money laundering and securities fraud.

(If you have a story in and around Mumbai, you have our ears, be a citizen journalist and send us your story here. )

(To receive our E-paper on WhatsApp daily, please click here.  To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Gautam Adani's half wealth goes in a flash

Gautam Adani's half wealth goes in a flash

Interpol extends its jurisdiction into the virtual world, will investigate crimes in metaverse

Interpol extends its jurisdiction into the virtual world, will investigate crimes in metaverse

Tech layoffs: Almost 1 lakh employees fired in January alone

Tech layoffs: Almost 1 lakh employees fired in January alone

International Networking Week: An essential annual event to help people grow together

International Networking Week: An essential annual event to help people grow together

Federal Bank allots 1,51,209 equity for exercised employee stock options

Federal Bank allots 1,51,209 equity for exercised employee stock options