The Securities Commission of the Bahamas has revealed through a press release that it currently holds an estimated $3.5 billion worth of FTX customers’ assets taken into the regulator’s custody on November 12th and a day after the crypto exchange filed for bankruptcy.

The Securities Commission of the Bahamas Determined The Assets Were at Risk

The regulator added that it took action to direct the transfer of all digital assets under the control of FTX digital markets (FTXDM), through the authority of the Supreme Court, for safekeeping.

The decision to do so was made after Sam Bankman-Fried provided information to the Commission ‘concerning the cyberattacks that took place on the systems of FTXDM, the restricted access by the employees of FTXDM to its AWS system, and other available information.’

It was also after on-chain data showed that an estimated $400 million worth of tokens were stolen from the exchange almost immediately after the bankruptcy filing, kickstarting anxieties over the possibility of the entire FTX holdings of digital assets being drained.

The Commission explained that it had ‘determined that there was a significant risk of imminent dissipation as to the digital assets under the custody or control of FTXDM to the prejudice of its customers and creditors.’

The Digital Assets Are Being Held Temporarily and Belong to FTX Creditors — Securities Commission of the Bahamas

In addition, the Bahamian regulator stated that the digital wallets holding an estimated $3.5 billion in assets are exclusively under its control ‘on a temporary basis.’

The regulator will continue holding the assets until ‘The Bahamas Supreme Court directs the Commission to deliver them to the customers and creditors who own them, or to the JPLs to be administered under rules governing the insolvency estate for the benefit of the customers and creditors of FTXDM.’

The Securities Commission of the Bahamas concluded by stating that it will continue conducting ‘a comprehensive and diligent investigation into the causes of FTX’s failure.’

(By John P. Njui)