Last Updated on December 30, 2022 by Bitfinsider
Following a security breach that caused FTX to lose millions, the Bahamas Securities Commission confiscated a portion of customer assets when the cryptocurrency exchange sought bankruptcy protection on November 11.
According to a statement from the regulator issued late on Thursday, the Securities Commission of the Bahamas has been holding onto assets belonging to FTX customers worth more than $3.5 billion since Nov. 12.
Security concerns led to the decision to take custody of the funds, specifically from FTX Digital Markets Ltd. of the cryptocurrency exchange. Between $370 million and $400 million in crypto assets were stolen from the exchange’s wallets just hours after it filed for bankruptcy protection. The US Department of Justice is presently looking into the hack.
According to the statement from the Commission, the money is kept in “digital wallets controlled by the Commission, for safekeeping.” Until the Bahamas Supreme Court orders their restitution to FTX customers and creditors, the assets will continue to be under the jurisdiction of the Commission.
The regulator earlier claimed that in November, it moved the assets of FTX Digital Markets to a digital wallet under its control.
Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.