The assets will reportedly be held until the court allows their return to customers and creditorsThe Bahamian Securities Commission (BSC) says it took control of FTX deposits valued at more than $3.5 billion, shortly after the crypto exchange filed for Chapter 11 bankruptcy protection in November.According to a media release published late Thursday by the commission, all digital assets in FTX’s Bahamas unit FTX Digital Markets were seized due to a risk of their “imminent dissipation.”The report highlighted that shortly after FTX filed for bankruptcy, about $372 million worth of tokens were stolen from the exchange by an unknown actor thought to be an external hacker. FTX then saw nearly $700 million of token outflows within a 24-hour span, according to blockchain research firm Nansen.Two of the fallen crypto tycoon’s close associates – former FTX chief technology officer Gary Wang and former Alameda Research CEO Caroline Ellison – have pleaded guilty to criminal charges related to the collapse of the cryptocurrency exchange. They are currently cooperating with the Justice Department’s investigation.According to the US Securities and Exchange Commission (SEC), Bankman-Fried diverted billions of dollars of customer funds to help grow his other entities. The SEC has also charged that as late as last month, he was continuing to mislead investors while trying to fill a multi-billion-dollar hole in FTX’s balance sheet. That conduct stopped only when FTX and Alameda filed for bankruptcy protection on November 11, the regulator has charged.
This article was originally published by RT.