FTX ordered to indemnify and reimburse Bahamas for assets safekeeping News ▸ FTX ▸ Bankruptcy
FTX ordered to indemnify and reimburse Bahamas for assets safekeeping
The Bahamas regulator said all expenses it incurs will be approved by the country's supreme court and are subject to reimbursement by FTX.
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Updated: Nov. 22, 2022 at 1:10 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bahamas Supreme Court on Nov. 21 ordered bankrupt crypto exchange FTX to indemnify and reimburse the Securities Commission of Bahamas (SCB) for expenses it will incur while safekeeping its digital assets.
Securities Commission of The Bahamas Secures Court Order For Right of Indemnity and Reimbursement. https://t.co/j7AAxZhdrQ pic.twitter.com/aBQLJtYQ8q
— Securities Commission of The Bahamas (@SCBgov_bs) November 22, 2022
On Nov. 18, the watchdog revealed that it directed the embattled firm to transfer crypto assets under its control to the Commission’s wallet on Nov. 12.
According to the Nov. 21 press statement, the SCB said:
“[The court order]confirms the Commission is entitled to be indemnified under the law and FDM shall ultimately bear the costs the Commission incurs in safeguarding those assets for the benefit of FDM’s customers and creditors, in a manner similar to other normal costs of administering FDM’s assets for the benefit of its customers and creditors.”
It added that no payment would be made to its coffers without the court’s approval.
The control of FTX’s assets has generated several controversies within the crypto community. Earlier this week, the FTX hacker wallet began dumping around $60 million worth of Ethereum (ETH) for Bitcoin (BTC). Reports also emerged that the hacker was spoofing the meme coin transactions.
Meanwhile, the Bahamian regulator had earlier denied granting FTX the right to prioritize the withdrawal of Bahamian assets.
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Posted In: FTX, Bankruptcy
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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FTX is a cryptocurrency derivatives exchange that offers futures, leveraged tokens and OTC trading.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
