FTX Client Assets Are Held By Bahamian Regulator For $3.5B

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 seize custody of the money, especially from FTX Digital Markets Ltd. of the cryptocurrency exchange. Between $370 million and $400 million in crypto assets were taken from the exchange’s wallets just hours after it filed for bankruptcy protection. The US Department of Justice is presently looking into the incident.

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.