Bahamas – $3.5 billion crypto from FTX captured by BLOX

Bahamas seizes $3.5 billion in crypto after FTX’s bankruptcy Regulators say they are holding the crypto with the intention of returning it to defrauded investors if the court decides.

FTX Digital Markets in the Bahamas

It’s about cryptocurrency, a division of crypto exchange FTX, FTX Digital Markets (FTXDM) based in the Bahamas. Most of FTX’s top executives live (or used to live) in the Bahamas, including former CEO Sam Bankman-Fried. He was also arrested there.

The cryptocurrencies were seized on November 12, a day after the former crypto exchange filed for bankruptcy. According to Bloomberg. According to the article, Bahamian authorities seized this crypto on the advice of Sam Bankman-Fried. This has been confirmed by the local police and informed in a press release of SCB.

The former CEO of FTX reportedly warned the National Financial Supervisory Board of the Bahamas (SCB) of the “immediate disappearance” of client funds if no action was taken.

Millions worth of crypto stolen

We know that bankruptcy is known within hours $372 million Crypto stolen. Authorities managed to freeze funds in some FTX platforms as those business units cooperated with SCB. Who knows how much crypto would have been stolen otherwise.

The amount stolen was significantly less than the billions of dollars Bankman-Fried was accused of misappropriating while in charge of FTX. Officials say the 30-year-old founder $1.8 billion in fraud Alameda Research collects high-risk bets to cover personal expenses.

Crypto is for the right owners

A step Press release Securities Commission of The Bahamas, forfeited funds will be returned to their respective owners.

“On November 12, 2022, the transferred digital assets will be temporarily held by the Commission until the Supreme Court of The Bahamas orders the Commission to deliver them to the customers and creditors who own them.”

A mixture of Alameda and FTX

SCB also wrote that it will continue its own investigation into FTX Digital Markets and FTX’s collapse. The investigation specifically concerned the relationship between FTXDM and Alameda, which allegedly had an inherent advantage in trading on the exchange. The financial mix between the two companies is still being drawn up by the courts.

Alameda Research is an investment fund founded by Bankman-Fried. His ex-girlfriend Caroline Ellison managed the fund when FTX went bankrupt. Rumor has it that Alameda has been kept afloat by FTX’s crypto, Free FTT, for years.

Ex-girlfriend gathers evidence

Bankman-Fried has now been extradited from the Bahamas to the United States, where he has complied with the requirements $250 million bail. His ex-girlfriend has said she is cooperating with US authorities to gather evidence against Bankman-Fried in exchange for a reduced sentence.

U.S. According to the Securities and Exchange Commission (SEC), Ellison misappropriated client funds of FTX users for Alameda Research’s trading activities. This came to light after a thorough investigation by Coindesk. After publishing Related article Alameda exposed the shady dealings of FTX, Bankman-Fried and others.