The Securities Commission of The Bahamas has stated that the ongoing hacking attempts on FTX’s digital assets have validated the decision to secure the exchange’s assets on Nov. 12.
In a statement released on Nov. 23, the commission emphasized that the compromised systems and continuous hacking threats faced by FTX reinforce the prudence of their swift action to safeguard the digital assets.
Following FTX’s bankruptcy filing on Nov. 11, concerns arose within the crypto community regarding approximately $266.3 million in outflows from wallets linked to FTX. By Nov. 12, this number had surged to over $650 million.
Analysts in the blockchain sphere have estimated that around $477 million may have been pilfered, while the remaining funds were transferred to secure storage under FTX’s supervision.
The commission stated that despite the suspension of FTX Digital Markets (FDM) license and the removal of its directors’ authority on Nov. 10, these measures were insufficient to safeguard FDM’s clients and creditors.
Citing the inherent risks associated with digital assets and the persistent threat of hacking, the commission sought a court order to transfer all digital assets from FTX to the commission for safekeeping.
Recent reports from blockchain analytics firm Chainalysis and crypto analyst ZachXBT suggested that the regulator’s actions were unrelated to the alleged FTX hacker, contrary to claims made in an emergency motion by FTX Trading Limited on Nov. 17.
The commission criticized the motion, which accused the “Bahamian government” of unauthorized access to FTX’s systems following the initiation of Chapter 11 bankruptcy proceedings, labeling the allegations as inaccurate and contentious.
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