Former FTX CEO Transfers Crypto Exchange Assets to Bahamas Government

Former FTX CEO Transfers Crypto Exchange Assets to Bahamas Government After Filing for Bankruptcy

FTX on Thursday in case of emergency Posted issued a statement in a court in Delaware, USA, alleging that regulators in the Bahamas ordered former CEO Sam Bankman-Fried to gain “unauthorized access” to FTX systems, which prompted him to file for bankruptcy digital crypto exchange assets transferred to the government of the Bahamas for safekeeping.

    Credit: REUTERS/Dado Ruvic

Credit: REUTERS/Dado Ruvic

The statement cites an interview with a Vox correspondent in which Bankman-Fried expressed serious contempt for regulators. In a statement, FTX said the alleged conduct called into question the Bahamian authorities’ request to be recognized as bankruptcy liquidators.

It also said that in connection with the investigation into the hack, Mr. Bankman-Fried and FTX co-founder Gary Wang reported Sunday, November 13, that regulators in the Bahamas have ordered certain crypto exchange assets to be placed on FireBlocks to deposit the control government of the Bahamas. Incidentally, this happened after an application for the opening of insolvency proceedings had been filed.

“Thus, the Debtors (FTX) have credible evidence that the government of the Bahamas is responsible for the unauthorized access to systems to obtain digital assets that occurred after the bankruptcy filing.” the crypto exchange said in a statement. On this basis, FTX concluded that the appointment of liquidators and the handling of the case under Chapter 15 of the Bankruptcy Act are seriously at stake. Chapter 15 bankruptcy filings are typically filed when the case is being heard outside of the United States.


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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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