Was FTX Hack Fake? Bahamas Regulator Take U-Turn

FTX HACK NEWS: As the FTX contagion is expanding, the regulators are taking U-turn from their prior claims. According to a media release shared by the Securities Commission of The Bahamas, the watchdog took the action of directing the transfer of all FTX digital assets to a digital wallet.

Regulators contradicting claims over FTX hack

Mario Nawfal, CEO of IBC group, mentioned that the Securities Commission of the Bahamas is now contradicting their prior claim. Earlier, they informed that the watchdog did not direct funds to be moved from FTX wallets.

However, now they admit that they ordered FTX to drain all FTX digital markets (FDM) assets. The letter mentioned that urgent regulatory action was required to protect the interests of clients and creditors related to the FTX.

It highlighted that the commission doesn’t have the knowledge that FTX Digital Markets Ltd. is a party to the US Chapter 11 bankruptcy proceedings. The commission added that in the coming days they will engage with other regulators and authorities.

Bahamas’ regulator will connect with multiple jurisdictions in order to address matters affecting the creditors and stakeholders of FTX. It will try to obtain the best possible outcome.

FTX contagion on a expand

This major announcement comes after FDM filed for bankruptcy under Chapter 15. As per reports, Non-US companies utilize this provision in order to protect themselves from creditors. FTX went on to file for bankruptcy after investors rushed to withdraw their funds from the platform and a failed rescue deal with Binance.

The collapse of FTX has sent massive shockwaves to the global crypto market. It has attracted prompting allegations of fraud. While it has been compared with the collapse of the Lehman brothers.

Coingape reported that crypto venture giant Multicoin Capital informed its investors that the FTX collapse has pushed the fund down by 55%.

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

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