The Securities Commission of The Bahamas has announced on Thursday that it confiscated more than $3.5 billion in FTX assets for safekeeping.
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The Commission said in a press release there was a "significant risk of imminent dissipation" as to the crypto held on FTX. The Bahamian watchdog added:
"As a result, in the exercise of its regulatory powers, the Commission requested and obtained a Court order to safeguard the digital assets owned by or under the custody or control of FTXDM or its principals by transferring them to secure digital wallets under the exclusive control the Commission."
The confiscated cryptocurrency will be held under the Commission's custody until the Bahamas Supreme Court orders it to return to the customers and creditors of the bankrupt crypto exchange.
Earlier in December, the Commission criticized FTX's new boss, John J. Ray III, over "misstatements," which were intended only to make "headlines and advance questionable agendas." The financial regulator said that Ray continues referring to redacted email correspondence between FTX's former head, Sam Bankman-Fried, and the Commission, which were designed to "create a false impression."
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