The Securities Commission of Bahamas recently announced that it ordered all contents of FTX’s crypto wallets to be transferred to a wallet controlled by it.

The Securities Commission stated in a media release,

“On 12 November 2022, the Securities Commission of The Bahamas took the action of directing the transfer of all digital assets of FTX Digital Markets Ltd. (“FDM”) to a digital wallet controlled by the Commission, for safekeeping.”

According to the commission, urgent interim regulatory action was essential to protect the interests of clients and creditors of FDM.

SCB’s statement added,

“It is not the understanding of the Commission that FDM is a party to the US Chapter 11 Bankruptcy proceedings.”

In its statement, the Securities Commission of The Bahamas also stated that it will engage with other regulators and authorities in multiple jurisdictions going forward to address matters affecting the creditors, clients and stakeholders of FDM globally to obtain the best possible outcome.

Towards the end of last week, Sam Bankman-Fried’s crypto exchange FTX filed for Chapter 11 bankruptcy protection in the US. However now, it seems like there might be a jurisdiction dispute between the US and the Bahamas.

It should be noted that the Royal Bahamas Police launched its investigation into FTX’s fall a week ago. The investigation was focused on looking into the possibility of any criminal misconduct connected with the FTX exchange’s collapse.