The Bahamas Securities Commission said the ongoing “hacking” of FTX digital assets proved they made the right decision to take control of the exchange’s assets on Nov. 12.
in a statement On Nov. 23, the committee said that FTX’s “systems have been compromised and that they continue to face new hacks — a fact that reinforces the committee’s wisdom in acting swiftly to protect these digital assets.”
On the same day that FTX filed for bankruptcy on November 11, the crypto community began flagging FTX-related wallet outflows worth approximately $266.3 million. By November 12, outflows had ballooned to more than $650 million.
Blockchain analysts said $477 million is suspected to have been stolen, while the rest was moved by FTX itself into secure storage.
In its latest statement, the commission said that while it suspended FTX Digital Markets (FDM)’s license to operate and stripped its directors of their powers on Nov. 10, it was not enough to protect FDM’s clients and creditors.
The committee 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 committee for “custodial custody.”
The latest statement reinforces recent analysis by blockchain analytics firm Chainalysis and Twitter crypto sleuth ZachXBT, who said on-chain evidence suggests the Bahamas regulator’s actions have nothing to do with the so-called “FTX hack.”
related: The ongoing saga of FTX: everything that happened so far
The committee also slammed an emergency motion filed by FTX Trading Limited on Nov. 17, which accused the “government of the Bahamas” of “directing unauthorized access to the debtor’s systems” after the opening of the Chapter 11 bankruptcy filing.
“Unfortunately, in the Chapter 11 filing, FTX Trading Ltd.’s new CEO misrepresented this timely action by making excessive and inaccurate allegations in the transfer motion,” the commission said.