Bahamas Securities Commission trustees $3.5 billion in FTX assets, Supreme Court approves sharing information with U.S. bondholders' representative.

The Securities Commission of The Bahamas (SCB) has issued a recent announcement regarding its actions since the bankruptcy of FTX. Currently, it is custodian of $3.5 billion in user assets, and the Supreme Court has approved the liquidators to collaborate with U.S. debtors in a highly confidential manner.

On 12/29, the SCB sought guidance from the Supreme Court of The Bahamas to clarify whether it can provide detailed information on FTX Group's FTX Digital Markets Ltd (FTXDM) digital assets to U.S. debtors' representatives regarding the liquidation.

The court instructed that SCB can only lawfully assist domestic and foreign regulatory bodies, but the liquidators can collaborate with U.S. debtors' representatives, provided that any sharing of information on digital assets is done in a highly confidential manner.

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According to previous announcements, SCB has appointed PwC's Kevin Cambridge and Peter Greaves as joint provisional liquidators.

Based on the aforementioned request, SCB has also issued a press release detailing all measures taken and the timeline regarding the bankruptcy of FTXDM to date.

According to the "Digital Assets and Registered Exchanges, DARE," FTXDM's registration has been terminated, and an involuntary temporary liquidation has been carried out.

Based on the hacking news provided by SBF, SCB believes that assets custodied by FTXDM pose significant risks. Upon obtaining a court order, the assets of FTXDM will be transferred to a trustee account designated by the court, and senior management permissions at FTX will be revoked.

SCB stated that assets worth over $3.5 billion have been temporarily transferred to a digital wallet controlled by a committee. During the transfer process, certain protocol tokens need to burn old tokens and mint new ones for the transfer to take place, but there have been no instances of excessive minting.

SCB emphasized that they will act in accordance with the Supreme Court's instructions, and whether the assets will be delivered to users or creditors in the future will be determined by the Supreme Court.