December 5, 2022

SCB: Attacks on FTX prove the right decision to take control of the exchange's assets

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SCB: Attacks on FTX prove the right decision to take control of the exchange's assets

The Bahamas Securities Commission (SCB) said it made the right decision by taking control of the assets of the bankrupt cryptocurrency exchange FTX.

According to the SCB statement, the fact that “systemsFTX has been compromised and continues to face new hacking attempts, confirms the timeliness of the Commission's prompt action to protect these digital assets."

On November 11, when FTX filed for bankruptcy, the crypto community noticed an outflow of assets from the exchange worth about $266.3 million to FTX-related wallets. By November 12, the outflow exceeded $650 million.

Analysts suggested that $477 million wasstolen, and the rest was moved to secure storage by the FTX exchange. The commission added that while it suspended FTX Digital Markets' (FDM) business license on Nov. 10, it was not enough to protect customers and creditors.

SCB added that due to "the nature of digitalassets” and “risks associated with hacking and compromise”, she requested an order from the Supreme Court to transfer all FTX digital assets to the Commission for safekeeping.

Recently, the Bahamas Securities Commission refuted reports that it required a priority withdrawal of assets of local clients.