The Bahamas Securities Commission says the continued “hacking attempts” on FTX’s digital assets prove they made the right choice to take control of the exchange’s assets on November 12.
In a statement on November 23, the commission said that the fact that “FTX’s systems have been compromised and continue to face new hacking attempts – reinforces the wisdom of the commission’s quick action to secure these assets digital”.
On the same day that FTX filed for bankruptcy on November 11, the the crypto community started reporting approximately $266.3 million outflows on FTX-associated wallets. As of November 12, releases had soared to over $650 million.
Blockchain analysts suggested that $477 million was stolen, while the rest was moved to secure storage by FTX themselves.
In its latest statement, the commission said that although it suspended FTX Digital Markets (FDM)’s license to do business and stripped its administrators of their power on November 10, it was not enough to protect customers. and FDM’s creditors.
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 custody commission.
The last statement reinforces recent analysis from blockchain analytics firm Chainalysis and Twitter crypto sleuth ZachXBT, who said on-chain evidence suggests the Bahamian regulator’s actions are unrelated to the alleged “FTX hacker”.
The commission also denounced the November 17 emergency petition from FTX Trading Limited, which called out the “Government of the Bahamas” for “directing unauthorized access to debtors’ systems” after bankruptcy filings began under the chapter 11.
“It is regrettable that in the Chapter 11 filings, the new CEO of FTX Trading Ltd. has misrepresented this timely action through the untimely and inaccurate allegations filed in the Transfer Petition,” the Commission said.