Government Entity That Seized FTX Crypto Assets Steps Forward | Eastern North Carolina Now

    Publisher's Note: This post appears here courtesy of the The Daily Wire. The author of this post is Ben Zeisloft.

    Law enforcement in the Bahamas revealed on Thursday that officials seized assets belonging to defunct cryptocurrency platform FTX and moved them to a government-controlled wallet for "safekeeping."

    The cryptocurrency platform, which was controlled by young multibillionaire Sam Bankman-Fried, filed for bankruptcy last week after users discovered that trading firm Alameda Research, a company run by former Bankman-Fried love interest Caroline Ellison, had allegedly been using consumer holdings from FTX to make investments.

    In the days after FTX imploded, cryptocurrency assets mysteriously began disappearing in what was widely reported to be a hack. Bahamian authorities confirmed in a press release that officials acted under an order from the Supreme Court of the Bahamas to transfer "all digital assets" held by FTX to a digital wallet controlled by the nation's Securities Commission.

    "Urgent interim regulatory action was necessary to protect the interests of clients and creditors," the government said.

    Attorneys representing FTX debtors filed an emergency motion which acknowledged that American and Bahamian officials must closely coordinate before asserting that all bankruptcy proceedings should occur in the District of Delaware. "Having two bankruptcy courts consider related issues simply makes no sense," the lawyers wrote. "It would result in potentially inconsistent opinions, duplication of efforts, and unnecessary expense."

    Fallout from the bankruptcy has provoked calls in the United States for greater regulations on the cryptocurrency sector and will be the subject of a bipartisan hearing hosted by the House Financial Services Committee next month. Bankman-Fried, whose fortune disappeared overnight when the company filed for bankruptcy, is reportedly seeking $8 billion from investors to cover withdrawal requests made by customers.

    John Ray III, the corporate lawyer who once represented plaintiffs impacted by the collapse of fraudulent energy company Enron, has since replaced Bankman-Fried as chief executive to manage the bankruptcy proceedings. In a court document filed with the United States Bankruptcy Court for the District of Delaware, Ray contended that the team managing the cryptocurrency empire was shockingly inept.

    "Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here," the seasoned attorney wrote. "From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented."

    Ray also revealed that Bankman-Fried and other senior employees lacked disbursement controls "appropriate for a business enterprise," allowing them to "purchase homes and other personal items for employees and advisors" in the Bahamas using company money. Bankman-Fried moved FTX to the island nation last year.

    House Financial Services Chairwoman Maxine Waters (D-CA) and Ranking Member Patrick McHenry (R-NC) announced that the committee will seek to hear testimonies from Bankman-Fried, as well as corporate leadership of Binance, a competitor of FTX which nearly acquired the company amid the liquidity crisis spurred by consumers worried about the safety of their holdings. "Unfortunately, this event is just one out of many examples of cryptocurrency platforms that have collapsed just this past year," Waters remarked in a press release. "We need legislative action to ensure that digital assets entities cannot operate in the shadows outside of robust federal oversight and clear rules of the road."
Go Back

Leave a Guest Comment

Your Name or Alias
Your Email Address ( your email address will not be published)
Enter Your Comment ( no code or urls allowed, text only please )

Fed Governor Implies Employers Should Slow Down Wage Increases Daily Wire, Guest Editorial, Editorials, Op-Ed & Politics ‘You Won’t Answer The Question’: Rand Paul Grills FBI’s Wray On Getting Private Info From Facebook, Social Media Companies


Latest Op-Ed & Politics

NGO was assisting illegal alien migrants reach Greece, 24 of their workers charged with felonies
Country star Ricky Skaggs said concert goers at his shows are more open these days to hearing about the gospel after all “the latest craziness,” “the virus,” and more.
“Will and Grace” star Leslie Jordan’s cause of death has finally been revealed three months after news broke that the actor was found without a pulse inside his crashed car. He was 67.
Local man Gary Marmon climbed to the top of The Forbes 400 after it was revealed he possessed both Taylor Swift tickets and a dozen eggs. Marmon beat out former richest man Elon Musk, who called the newcomer a beacon of inspiration.
The Biden administration on Friday blasted as “incomprehensible” Florida Governor Ron DeSantis’s move to block a controversial African American studies course from being taught in the state’s public high schools, even as leaks revealed the course’s syllabus leans into wokeism.
On Wednesday, the North Carolina General Assembly will hold opening ceremonies to kick off the 2023 legislative session. In odd-numbered years, legislators hold a “long session” starting in January.
Agriculture Secretary Tom Vilsack never attended meetings of the task force he co-chaired to help resolve the nation’s supply chain woes, according to a public records request from the Functional Government Institute.
Like Garrison Keillor’s Lake Wobegon where all the children are above average, it is great to hike with your dog anywhere. If you have a treasured local spot to take your dog on outings you know you live in the best state for hiking with your dog.
Three active-duty Marines face charges for allegedly entering the U.S. Capitol on January 6, 2021.


U.S. farmers who use John Deere equipment won a huge victory on Jan. 8 as the manufacturer gave them the right to fix their own equipment. North Carolina legislators have been waging a similar fight for farmers here.
With Republicans taking over the House, investigations into President Joe Biden’s administration are set to take off — as they should. After all, oversight is one of the key jobs of lawmakers as laid out in the Constitution.
Football legend Deion Sanders laid down some firm behavior standards for his team going into his first season as head coach at the University of Colorado Boulder.
hooray for protecting children, unlike monsters at ECU Health
course had contained everything from "Queer Theory" to socialism
In recognition of Biden's tremendous accomplishment of going one full day without more classified documents found at one of his residences, the White House has proudly hung a banner saying: "1 Day Without Classified Documents Being Discovered At President's House."
The World Economic Forum has finally jumped the shark, presumably while skiing across Al Gore’s “boiling ocean” behind a leaky tub steered by the radical Left’s Captain Queeg.
N.C. Appeals Court Chief Judge Donna Stroud began her new term by emphasizing bringing people together after COVID shutdowns and the recent judicial elections.
A federal judge in Florida has sanctioned former President Donald Trump and one of his attorneys over a lawsuit deemed frivolous against Hillary Clinton and 30 others.


Back to Top