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Bahamas Regulator Confirms It Ordered FTX Exchange to Transfer Crypto Assets to Government Wallets

It seems that astonishing surprises keep unveiling out of the FTX incident. As per the latest development, the Securities Commission of Bahamas has confessed that it directed SBF to transfer the assets of the company to the state reserve.

In the aftermath of this intrusive hack, Bahamas has now become the largest ETH holder in the world.

Complying with the request of Bahamian authorities, SBF proceeded to transfer millions of dollars’ worth of cryptocurrencies to a digital wallet under the control of the Securities Commission of the Bahamas.

The news is not based on speculations and has been confirmed during a press release by Bahamas Commission authorities on Thursday.

FTX Group filed for Chapter 11 bankruptcy proceedings under the pretext of lack of liquidity and a bank run crisis. During the proceedings of this bankruptcy, authorities found a $9.4 billion discrepancy in FTX balance sheets.

Another major discovery during the investigation was that FTX has been lending funds out of customer reserves to its sister company Alameda Research.

However, FTX bankruptcy proceedings also mention that the government of the Bahamas got unauthorized access to FTX funds.

Meanwhile, the general counsel of FTX.US Ryne Miller claimed that the company had moved more than $600 million worth of customer funds to cold storage wallets for safekeeping.

FTX’s Custodial Funds Under the Possession of the Bahamian Government

The latest statistics issued by Blockchain security firm Beosin reveal that the Bahamian government swapped FTX funds for ETH.

The estimate from the report suggests that the archipelago state now possesses around $330 million in ETH making it the 35th largest Ethereum wallet in the world.

Furthermore, FTX has used the automatic stay clause of Chapter 11 bankruptcy that grants it suspension from all judgments, foreclosures, property repossession, and collective activities for a specified period.

However, the fact that funds were moved an hour after the Chapter 11 form, it seems that FTX and the Bahamian Commission overlooked the automatic stay clause.

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