Bahamas Seized $3.5 Billion FTX Assets on Custody Concerns (1)

Bahamian authorities took control of $3.5 billion worth of digital assets at FTX Digital Markets shortly after it filed for Chapter 11 bankruptcy protection based on information provided by founder Sam Bankman-Fried, according to a statement on Dec. 29.

The Bahamian Securities Commission seized the digital assets of FTX, valued at more than $3.5 billion as of Nov. 12, citing a risk of “imminent dissipation” of the assets due to concerns flagged by Bankman-Fried that included cyberattacks against the exchange, the regulator said in the statement.

Within hours after FTX filed for bankruptcy on Nov. 11, about $372 million ...