The Bahamas Securities Commission says the ongoing “hacking attempts” on FTX’s digital assets prove they made the right call to seize control of the exchange’s assets on November 12.
IN claim On November 23, the commission said the fact that “FTX systems have been compromised and continue to face new hacking attempts – reinforces the wisdom of the commission’s swift action to secure these digital assets.”
On the same day that FTX filed for bankruptcy on November 11, the crypto community began to falter outflows from FTX-linked wallets worth roughly $266.3 million. By November 12, the outflow had increased to more than $650 million.
Blockchain analysts have suggested that $477 million is suspected of theft, while the rest was moved to secure storage by FTX themselves.
In its latest statement, the commission said that while it suspended FTX Digital Markets (FDM)’s business license and stripped its director of powers on November 10, it was not enough to protect FDM’s customers and creditors.
The Commission further explained that due to the “nature of digital assets” and the “risks associated with hacking and compromise”, it asked the Supreme Court to convert all digital assets from FTX commission for “custody”.
Latest 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 criticized FTX Trading Limited’s Nov. 17 emergency filing that called out the “Bahamian government” for “directing unauthorized access to the debtors’ systems” after the Chapter 11 bankruptcy filings began.
“It is unfortunate that in the Chapter 11 filings, the new CEO of FTX Trading Ltd. misrepresented this timely action through loose and inaccurate allegations made in the Transfer Petition,” the Commission said.