• Mon. Dec 23rd, 2024

Sam Bankman-Fried-Founded FTX Exchange’s Assets Worth $3.5B Being Held By Bahamian Regulators – Bitcoin (BTC/USD), Ethereum (ETH/USD)

ByShivdeep Dhaliwal

Dec 30, 2022
Sam Bankman-Fried-Founded FTX Exchange's Assets Worth $3.5B Being Held By Bahamian Regulators - Bitcoin (BTC/USD), Ethereum (ETH/USD)

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The Securities Commission of the Bahamas is holding FTX assets worth $3.5 billion, the regulator reportedly said on Thursday.

What Happened: The valuation of the assets is based on the pricing at the time of the transfer on a temporary basis in order to deliver them to customers and creditors, reported Reuters.

The digital assets of Sam Bankman-Fried-founded FTX were transferred to wallets under the control of the Bahamian regulator in November soon after the cryptocurrency exchange and its sister company Alameda Research and other related entities filed for bankruptcy in the United States, according to the report.

See Also: Best FTX Alternatives: How To Keep Your Crypto Safe In 2022

Why It Matters: “All transferred assets were and remain under the sole control of the commission,” said Christina Rolle, the executive director of the Commission in an affidavit with the Bahamas Supreme Court, reported Reuters.

After the transfer was effected, FTX founders Bankman-Fried and Gary Wang no longer had access to the transferred or frozen assets, according to Rolle.

It was reported earlier in November, that securities regulators in the Bahamas were seeking to control FTX’s bankruptcy proceedings challenging the beleaguered company’s Chapter 11 filing in the U.S. 

The bankruptcy and the unraveling of the exchange led to a crash in the price of Bitcoin BTC/USD and Ethereum ETH/USD as well as other major coins.

Read Next: Bitcoin Critic Peter Schiff Suggests Tokenizing Gold Ownership For Protection Against Government Control

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Image and article originally from www.benzinga.com. Read the original article here.