Recent FTX hacks prove it was right to ‘secure’ its assets: Bahamian regulator

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The Secu­ri­ties Com­mis­sion of The Bahamas says the con­tin­ued “hack­ing attempts” on FTX’s dig­i­tal assets prove they made the right call to take con­trol of the exchange’s assets on Nov. 12. 

In a state­ment on Nov. 23, the com­mis­sion said the fact that FTX’s “sys­tems were com­pro­mised, and that they con­tin­ue to face new hack­ing attempts – rein­forces the wis­dom of the com­mis­sion’s prompt action to secure these dig­i­tal assets.”

On the same day that FTX filed for bank­rupt­cy on Nov. 11, the cryp­to com­mu­ni­ty began flag­ging rough­ly $266.3 mil­lion worth of out­flows on wal­lets asso­ci­at­ed with FTX. By Nov. 12, the out­flows had bal­looned to more than $650 million.

Blockchain ana­lysts have sug­gest­ed that $477 mil­lion is sus­pect­ed to have been stolen, while the remain­der was moved to secure stor­age by FTX themselves. 

In its lat­est state­ment, the com­mis­sion said while it sus­pend­ed FTX Dig­i­tal Mar­kets (FDM) license to con­duct busi­ness and stripped its direc­tors of their pow­er on Nov. 10, this was not suf­fi­cient in pro­tect­ing cus­tomers and cred­i­tors of FDM.

The com­mis­sion fur­ther explained that due to the “nature of dig­i­tal assets” and “the risks asso­ci­at­ed with hack­ing and com­pro­mise,” it sought an order from the Supreme Court to trans­fer all dig­i­tal assets from FTX to the com­mis­sion for “safe­keep­ing.”

The lat­est state­ment rein­forces recent analy­sis from blockchain ana­lyt­ics firm Chainal­y­sis, and Twit­ter cryp­to sleuth ZachXBT, who said that on-chain evi­dence sug­gests that the actions of the Bahami­an reg­u­la­tor is not relat­ed to the alleged “FTX hacker.” 

Relat­ed: FTX’s ongo­ing saga: Every­thing that’s hap­pened until now

The com­mis­sion has also lashed out at the Nov. 17 emer­gency motion by FTX Trad­ing Lim­it­ed, which called out the “Bahami­an gov­ern­ment” for “direct­ing unau­tho­rized access to the Debtors’ sys­tems” after the com­mence­ment of Chap­ter 11 bank­rupt­cy filings.

“It is unfor­tu­nate that in Chap­ter 11 fil­ings, the new CEO of FTX Trad­ing Ltd. mis­rep­re­sent­ed this time­ly action through the intem­per­ate and inac­cu­rate alle­ga­tions lodged in the Trans­fer Motion,” the Com­mis­sion said. 

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