The Securities Commission of The Bahamas said the continued hacking attempts on FTX prove it made the right call to secure FTX’s digital assets.
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.
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 to protect 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 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.