FTX Crypto Worth $3.5B Held By Bahamas Regulator

Bahamas regulators took control of FTX crypto following a peculiar cyberattack as the exchange prepared to file for bankruptcy

article-image

Keerthi Satheesh/Shutterstock.com modified by Blockworks

share

FTX users caught in the crypto exchange’s staggering collapse may finally have some good news by way of The Bahamas.

The Securities Commission of The Bahamas (SCB) said Thursday it managed to safeguard $3.5 billion in crypto tied to local subsidiary FTX Digital Markets (FTXDM), the firm behind Sam Bankman-Fried’s flagship global platform.

After FTX was hit by cyberattacks leading up to filing for bankruptcy in November, the Commission said it saw risks to the platform’s remaining digital assets. It obtained a court order to protect the crypto with assistance from infrastructure startup Fireblocks.

The value of the remaining assets was based on market pricing at the time of transfer, on Nov. 12. Crypto markets have stayed relatively steady since then.

The Commission will hold the assets until the Supreme Court directs it to send them onto creditors. It has now requested clearance to share information about the assets with FTX’s US-based bankruptcy proceedings, although its legal ability to do so remains in flux.

SCB said it will “continue to conduct a comprehensive and diligent investigation into the causes of FTX’s failure, act in accordance with directions issued by the Supreme Court of The Bahamas, collaborate with other supervisory authorities, and take such further actions as needed to preserve the assets of FTXDM and to safeguard the interests of customers and creditors of FTXDM.”

The Department of Justice is reportedly looking into the hacking incident, which saw nearly half a billion dollars in crypto illicitly withdrawn from FTX’s operational hot wallets.

Lawyers estimate FTX companies owe funds to between 100,000 and one million creditors, with the top 50 out-of-pocket by $3.1 billion. Bankman-Fried allegedly siphoned crypto worth billions of dollars from FTX to trading unit Alameda Research, which ultimately lost the funds via risky market strategies.

Bankman-Fried was extradited to the US from The Bahamas last week, where he’ll face a whopping eight-count indictment including fraud and conspiracy charges. Two associates, Alameda Research CEO Caroline Ellison and chief technology officer Gary Wang, have already pleaded guilty to their own charges.

Bankman-Fried is currently under house arrest at his parents’ home in California while he awaits trial. He was granted bail by a US Magistrate Court after signing a $250 million bond backed by the house.

Updated Dec. 30, 2022 at 5:27 am ET: Added context about estimated number of FTX creditors.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates (19).png

Research

Suilend has grown into the top money market and liquid staking provider on Sui. STEAMM, Suilend’s Superfluid AMM, presents a compelling avenue for growing market share within Sui’s DEX landscape and revenue generation for the protocol. Suilend’s multi-product suite position it well for owning market share across key verticals. While current metrics across the Sui ecosystem are likely inflated due to Sui Foundation incentive programs, SEND trades at amongst the lowest multiples in the lend/borrow sector, suggesting that a bull case for continued growth in the ecosystem may be mispriced.

article-image

The stablecoin issuer now plans to offer 32 million Class A common stock shares at a price of up to $28 each

article-image

Let’s go whale watching, Bitcoin style: Investigating the mysterious “12ib7” wallet now worth $3.2 billion

article-image

Bitget’s L2 is undergoing a leadership change and will be helmed by Colin Goltra, formerly the blockchain’s chief growth officer

article-image

The funding was spread out across 61 rounds, a slight dip in both number of rounds and total funding in comparison to other months

article-image

Why is it controversial to say things are better than they used to be?

article-image

Wallchain could make influencer ROI more measurable for Solana businesses