Topic: Bahamas Govt. Ordered FTX to Transferred Funds to Government Wallet (Read 390 times)

No, it's not like that!
There is no FTX intl, there is FTX Digital Markets Ltd., the subsidiary of  FTX Trading Ltd , both of them were registered in Bahamas.
FTX Digital Markets Ltd kept their bankruptcy with the Bahamas authorities, while FTX Trading Ltd agreed with the liquidators appointed by the Bahamas authorities to file for chapter 11 in Delaware US.


Money doesn't belong to a country!
The money belongs in both situations to the creditors that will file for a claim, there is no money going to the US or Bahamas government, all the assets will be frozen and retrieved by the ones appointed at restructuring or in case this is deemed impossible liquidate the company and pay up the how much as recovered to the debtors.
It's not like FTX Australia will pay first Australians then the users from New Zeeland and last the ones from France.

As for how will they be split it's simple, the money either belongs to FTX DM or to FTX Trading, and there will be no split in any moving assets from one side to another.


Again, it doesn't work like this, each of the companies will have to pay back their own claims first if anything is left will there be a complete liquidation nd see who gets the extra or it might be that the exchange will be kept running as a separate entity! There is no pooling of funds and paying randomly.

Sbf claimed many times that FTX USA is solvent and so is FTX Japan. However this is catch 22. Those two entities might be solvent. However if they pay out everyone then the people who got funds trapped into FTX intl will get less.

Since he included FTX us in the bankruptcy it seems that he closed that door of making everyone whole at FTX US. And the pie is going to have to be split even thinner between all the users who had a balance at the time of bankruptcy.

Probably big investors are came from those countries and that’s why they get the attention of the government to run after FTX and recover their money as much as possible. Also FTX files for bankruptcy and that’s why they have hearings for this. If they are expecting to still get the funds for FTX then it should be distributed back to every users and holder on that exchange. This might be the dead end for FTX but many are still expecting for their money to be returned.

So how is this going to work exactly.

FTX US has a bankruptcy hearing in USA.
FTX Intl has a bankruptcy hearing in Bahamas.
FTX Japan in Japan
FTX Australia in Australia.

However how do they split the money exactly? They had horrible accounting. How can they tell which money belongs to which country? Seems impossible to address. This is why I am confused why they have all these hearings everywhere.

I was overjoyed to read headlines that the Bahamas government ordered FTX to transfer their fund to a government wallet. FTX committed serious fraud at the cost of people’s money and did not deserve to get away with all of these bad things they have done.
The Government of the Bahamas did the proper thing because I was hesitant if they were to step in and show their authority. I was not personally affected by all of this since I don’t keep my coins on the exchange, but I know that there are those who do not have access to their coins.
So hopefully when this is all over, they can get their money back. Being optimistic to know the Government of Bahamas has control of the stolen coins.

Because they aren't talking about the same company.

The funds frozen in the Bahamas belong to FTX Digital Markets Ltd, a subsidiary of FTX Trading Ltd.
FTX Trading Ltd has filed for Bankruptcy protection in Delaware US.

The US company Chapter 11 in Delaware:
https://pacer-documents.s3.amazonaws.com/33/188450/042020648197.pdf
Then they filed for Chapter 15 Bankruptcy in the US in New York, this is for recognition of a foreign bankruptcy claim
https://storage.courtlistener.com/recap/gov.uscourts.nysb.314256/gov.uscourts.nysb.314256.2.0.pdf

This is the mess between US and Bahamas, not to mention that other branches have filed for bankruptcy in their own countries, like Australia.

This is indeed a piece of true news as the "The Securities Commission of The Bahamas" confirmed. It is the best practice in case a company goes insolvent. I only wonder why a new CEO was announced last week when it is clear that the company can't meet its liabilities. The documentary I watched on what really transpired is so shocking, and it's an eye-opener for me to be more careful with where I entrust my money. Sam Bankman-Fried is just a gambler and villain that was mistaken to be a hero.

Please, read the warning of @theymos here in case you missed it: https://bitcointalksearch.org/topic/reminder-do-not-keep-your-money-in-online-accounts-5421039

Basically there is a white hat and a black hat wallet which flowed out of the FTX hot wallet when they claimed bankruptcy.

Last night they dumped like $50M ETH and traded for BTC. And last week they dumped many alts and traded for Dai, very suspicious.

The other wallet is some multisig wallet and it’s legit. They won’t be selling anything until the court starts.

Not sure what they are doing and I do not want to make allegations but it does look weird that they are converting it to ETH 1st. It will be interesting when they release their full public statement and the reasons why they are doing what they are doing. There has not been a lot of PR from the Bahamian government

First they convert all of their funds in to ETH and now they are converting it to BTC so that no one can freeze it. It looks like they wants to keep those for themself. Now its confirmed that FTX investors would never get their funds back. I rally feel sorry for those who lose everything in FTX and People should understand that centralized exchange is not trusted no matter how big it is.

The Bahamian government has seized the funds and the company is in free fall. ftx are claiming that they can get back the funds but they prolly can not. They would need to petition to the government and have them accept that petition which is not going to happen. They are living in dream land and are probably trying to convince investors that they can recover to try and salvage anything they can from the company until it does die. ftx has died there is no way back for them from here.

I have no idea how this bankruptcy is working exactly.

Both USA and Bahamian government are saying they are in charge of the bankruptcy. We are getting reports from both agencies they are working on recovering funds. However how can both of them do this exactly?

Very confused.

Of course this is not what we called a hack and there is no need for him to hack the system that he can access freely because he is the owner of it right? It can also be called as an inside job.

I think SBF do also think twice if he will follow the order or not but decided to follow it at the end, maybe because he think he will be save by the Bahamas government or maybe he has a special connection with them? He knows that the money is going to be confiscated soon by the authorities so for him, it's better if he can just send it out to the people that he knew. This sounds a nice plan but unfortunately, it was still discovered out. Poor SBF.

This can not be called a hack. It's a seizure that Govt did to get all those funds. I really have doubt that these funds will ever be sent to their real owners. This event happens so quickly that I think they were in a rush that someone else will take control of the funds. If they had really good intentions here they would have just keep all those funds in their original forms instead of converting them to other cryptos.

I guess this is not exactly bad thing because it means fund are SAFE, at least some funds. We can't be sure if these are all funds anyways. FTX drama is really disruptive for crypto markets and overall community. Just because of it many people probably sold their coins and left markets. I know a person who lost his money in FTX as well. I hope it will be quickly solved because its delaying bulls to dominate Bitcoin price.

I completely agree with your opinion. Not only the FTX incident but most of the allegations of hacking, stealing assets of exchanges or projects, up to 99% of owners, and developers are the culprits and they make up those fake stories. Everything is planned in advance and they just have to wait for the perfect official announcement date and they will get the sympathy of investors, a lot of people are still believing that SBF is the victim in this story. Crypto markets are pitfalls, the game here has only one winner so stop trusting someone and get in the habit of protecting yourself.

I have read the case, seems bad for FTX, if proven, bahamas government has explained about Bahamas regulator confirms FTX asset seizure after hack accusation.

There are several points to take away from the quote above Bahamas vs. FTX, they don't trust each other, it's proven from the Bahamas statement after the hacking investigation, In my opinion, if what the Bahamas government says about FTX is true, this case could be fatal for FTX in the future, this could be bad for FTX, if what Bahamas says is true.

For that we will wait for further developments because both parties are still arguing with each other the request of the Bahamian government is still being ignored, FTX stays on stand on hack.

He is a asshole that is what he is. To think that this guy will go home probably already benefited from the amount of money he has filtered out and not blink a eye about the 1000s of people he has hurt by doing this. I cannot believe that the government would allow them to do it unpunished it should be a reduced sentence and not get off free.

Hack their own system and money? I don't know what to say if this is securing or just an individual act of the Bahamas' government. When the government is starting to intervene, I guess they'll start to act on it with all of this catastrophe that FTX has gone in.

It's confirmed and official, the SEC of Bahamas said it. Reuters posted it too.
(https://www.reuters.com/technology/bahamas-regulator-says-it-assumed-control-digital-assets-ftx-2022-11-18/)

Wether it is tru or not I believe the Bahamas Government will deny it.  It will be a huge scandal if the news is true.  Government authority asked SBF to hack FTX, what a funny line to the point it looks like a joke even thought the word phrase is a serious case.


Indeed a very shady and illegal way of acquiring funds.  The government doesn't need to hack the exchange in order to get its fund. It can just secure a court order and freeze all the funds inside the FTX exchange.  This recent rumor make the scenario like a joke.

They filed for bankruptcy and yet they are not cooperating?
Probably Bahamas Govt. is done with the explanation of SBF or lose a lot of money as well and the only way to get them is to hack or get access to the system. SBF have to cooperate if there’s no anomaly with FTX, the government is just concern about the cases and issues against FTX, but hacking should not be the word because its like telling someone to hack the system and let other users suffer. 

I think they ordered SBF and get the remaining money to put it in their holdings. Maybe to safeguard it or something, and so it was not a hack after-all


You can read it here:Bahamas Securities Regulator Says It Ordered FTX Crypto Transferred to Government Wallets .

And it's already in major social media sites, so 100% sure that they are already involved in this messed. Probably SBF is in their country, not sure why he is, but report says that he has planned to put a headquarters there but it didn't materialized.

This was my exact thought. The media is trying to make it seem like he’s not just some bitch thief who got caught stealing and is doing what any bitch does, give up everything to try and save himself. Let’s be honest… He didn’t hack anything. He had access to the funds and the Bahamian government said you can go to prison or you can give us all the money in your exchange, so he gave up all the money so he could go home instead of a cell. He’s not some brilliant hacker. He’s a con artist that took bleeding heart liberals for a ride.

I honestly do not believe this. Bahamas government wouldn't need to do something shady like this, they could ask people to invest their money there with low tax rate anyway, to get attention from USA in a bad manner would mean some coup could be on the way very quickly, we all know how USA loves to do coups and this would be a great reason for them, war hawks would be in love with the idea too.

I am 100% sure that Bahamas would rather keep away from this, offer low tax rate, and get money that way, and would just live a comfortable life. Why not take just 1% of hundreds of billions of dollars from the wealthy Americans and live a king’s life that way without any problems at all.

Was the word "hacked" used by more news media or does it imply that the owners of the platform refused to comply with the bankruptcy application?
The case has now entered into counts, and I did not think that the Bahamas had regulatory powers that would enable it to force the owners to transfer or withdraw money.

Let's continue the details, although I think that the solution to the problem may take years.

And that's a reason to bring all that clickbait fake stuff here too?

This is the motion:
https://pacer-documents.s3.amazonaws.com/33/188450/042120648186.pdf


So beyond all the buzzwords to gain likes, the story is pretty simple.
The government didn't trust FTX will keep the assets under control and decided to force them to move all the funds into a custodian under their control, not under FTX's control.

Seriously, edit the title!

As I have suspected, but let's be clear here, I don't think that Hack is the correct semantics here.

Second, why did SBF didn't object to this, what is store for him if he follow the Government of Bahamas and move the amount to a wallet that they have control, moving SBF out of the picture.

As days passes, this cases became so weird, with so many personalities, really hard to believed which one is telling or which has some narrative behind.

In another article I read, FTX was hacked and SBF confirmed it was done by the company's own employees. It can be said that the news related to SBF and FTX is really a lot and confusing, we still can't confirm what is the most accurate reason for all these series of events.
FTX is very difficult to return investors' money, so even if we find out the truth, we will never demand justice for investors. My concern now is that like Dokwon, SBF and his girlfriend, all 3 should be properly punished for causing serious business consequences.

This is a perfect example of why crypto and centralized exchanges don’t go well together. So many people thought they owned Bitcoin when they didn’t and those who owned Ethereum had it handed to authorities from a single individual. I’m not a huge fan of DeFi but decentralized exchange solutions and self custody need to be more popular somehow.

If I understand correctly, This is just an speculation and no official statement coming from bahamas government that they indeed command this. Why they need to order SBF to hack it while SBF is the CEO. They should just order SBF to freeze all the wallets on FTX if the intention is for just safekeeping of assets.

This is a very shady conclusion and this illegal since they are robbing customers outside there jurisdiction. They should keep the funds inside FTX and not from exterior wallet which FTX doesn't have access.

"Hack" is quite a weird word to use in this case. Would it technically be a "hack" if SBF had access to FTX's back-end system in the first place?

Yes I heard this news and I find it hard to believe. Because why didn’t he just send the funds to the governments wallets instead of moving all the assets to different Defi networks and dumping it all for dai.

There is also the issue with slippage. Since he was selling massive amounts with poor liquidity he got bad fills and lost tons of money this way. A very bad action on the governments part.

But at least these funds are safe.

This is all over Twitter now. Different media already released this too.
The Bahamas Government takes over all FTX assets for "safekeeping", so one of the top Ethereum holders that is labeled before as an FTX Hacker when there was around more than $300m total of assets flew out from FTX wallets.




So for me, is this good news or bad news if it's true that the Bahamas government already got these funds from FTX?
Is this even legal action by the Bahamas Government?
This is a very roller coaster event right now on cryptocurrency.