FTX Crypto Assets Seized By Police In The Bahamas

Source: commons.wikimedia.org

On Thursday, following the demise of FTX, Bahamas law enforcement seized items belonging to the cryptocurrency platform.

Last week, billionaire FTX head Sam Bankman-Fried filed for bankruptcy after alleged mishandling of company funds was revealed. Users of the platform discovered the company was allegedly using customer holdings for other investments. Assets were being traded by Alameda Research, which was run by a romantic interest of Bankman-Fried.

Officials in the Bahamas released a statement on Thursday saying they had transferred “all digital assets,” in accordance with the Supreme Court of the Bahamas. Justification for the move was necessary and part of an “Urgent interim regulatory action…to protect the interests of clients and creditors.”

The fall of FTX has renewed calls for government oversight of the crypto industry. Bipartisan hearings are expected to occur by the House Financial Services Committee in December.

Bankman-Fried, after losing virtually all his wealth, is reportedly begging investors, hoping to recoup the $8 billion that is being demanded by customers.

Stepping in to navigate the company through bankruptcy, famed attorney John Ray III filed a court document Ray said, “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here. From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented.”