FTX's Bombshell Court Filing: Sam Bankman-Fried Was Ordered By Bahamas Regulators To Obtain Digital Assets Via 'Unauthorized Access'

Cryptocurrency exchange FTX FTT/USD has pointed to evidence that suggests its disgraced former CEO Sam Bankman-Fried was ordered by Bahamian regulators to gain “unauthorized access” and obtain digital assets of the company following its bankruptcy filing.

What Happened: FTX said in an emergency court filing that Bahamas regulators’ conduct puts it “in serious question," according to a CNBC report.

″In connection with investigating a hack on Sunday, Nov. 13, Mr. Bankman-Fried and Mr. Wang (FTX co-founder), stated in recorded and verified texts that 'Bahamas regulators' instructed that certain post-petition transfers of Debtor assets be made by Mr. Wang and Mr. Bankman-Fried,” the filing said, as per CNBC.

It should be noted that FTX was hacked on Nov. 12, when more than $600 million in cryptocurrencies mysteriously vanished from the company’s wallets.

See More: Decentralized Exchanges

The Securities Commission of The Bahamas justified the move, stating that “urgent interim regulatory action was necessary to protect the interests of clients and creditors of FTX Digital." 

It added that it exercised its power under the authority of a Supreme Court order — moving the assets to a “digital wallet controlled by the Commission, for safekeeping.”

Price Action: FTT is trading at $1.55, down 2.52% in the last 24 hours, according to Benzinga Pro.

Read Next: Bitcoin, Ethereum, Dogecoin Mixed: Analyst Says Cryptos Weakening As 'Risk Appetite Just Left The Building'

Market News and Data brought to you by Benzinga APIs
Posted In: CryptocurrencyNewsLegalTop StoriesMarketsMediaBahamasFTXSam Bankman-Fried
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!