Bahamas Holding $3.5 Billion Of FTX’s Cryptocurrency For ‘Safekeeping’

The Bahamas government seized $3.5 Billion cryptocurrency Assets belonging to FTX (the defunct exchange that was once led by) Sam Bankman-Fried, after the company’s collapse.

FTX file for bankruptcy Users discovered last month that the venture was tied to sister firm Alameda Research. Both were run by Bankman Fried and other amateur business leaders. The entrepreneur was detained Authorities in the island country, where his companies are headquartered, were informed earlier this month. extradited The United States

A statement The Securities Commission of The Bahamas confirmed that this agency was indeed authorized. “took the action of directing the transfer of all digital assets” managed by the company, amounting to $3.5 billion in cryptocurrencies, to government-controlled digital wallets “for safekeeping” Reports of possible cyberattacks started to circulate. The transfer was made on November 12, one day after FTX filed for bankruptcy.

Agency still holds the assets “on a temporary basis” The Bahamian Supreme Court will decide how assets should be divided until that time. An earlier statement The Securities Commission of The Bahamas published a statement on November 17 that confirmed that assets owned FTX had been seized. However, the amount was not disclosed at the moment.

John Ray III is the current CEO at FTX. He is a bankruptcy attorney and manages the company’s assets distribution to customers and investors. court documents He had never seen it before. “such a complete failure of corporate controls and such a complete absence of trustworthy financial information” Throughout his career, including the management of Enron’s collapse. He told House Financial Services Committee members that he is mitigating “to the greatest extent possible” Former associates of the defunct firm suffered harm.

According to a judicial filing, Damien Williams, United States Attorney for Southern District of New York, has indicted Bankman Fried of conspiracy to wire fraud, conspiracy, commodities fraud, conspiracy, money laundering, conspiracy and conspiracy to defraud Federal Election Commission, and campaign finance violations. press release From the Justice Department. The sentence could see the disgraced entrepreneur spend up to 115 years in prison.

Bankman-Fried’s current position is below house arrest at his parents’ estate in northern California, which is worth $4 million and includes amenities such as a gated pool and a lawn lined by palm trees. The former financier’s $250 million bond is secured by his parents’ equity in the property.

Bankman-Fried was the subject of controversy, despite being accused of fraud and trying to manipulate American consumers using mass-market advertising. contributing heavily He was the sixth-largest overall donor to Democratic campaigns and he emerged as the sixth largest overall donor in the latest midterm elections. Two years ago, he was the second-largest donor for the Biden campaign.

The Senate Majority PAC raises money for Democrats running for election to the upper chamber. returned Bankman-Fried, Nishad Singh (director of engineering at FTX) combined donated $3 million. As bankruptcy lawyers try to recoup funds, the Democratic National Committee as well as the Democratic Senatorial Campaign Committee (DSC) and the Democratic Congressional Campaign Committee have made similar promises to return fraudulent donations.