The transfer of FTX’s digital assets was mandated by the Bahamas’ securities regulator.

On November 12, according to the Securities Commission of The Bahamas (SCB), the commission mandated that all digital assets belonging to FTX Digital Markets (FDM) be transferred to a digital wallet it owns.

The SCB claimed in a statement dated Nov. 17 that it had moved the assets to a “digital wallet managed by the Commission, for safekeeping,” in accordance with the authority of a Supreme Court decision.

Control of FTX Digital Markets Ltd.’s assets is taken over by the Bahamas Securities Commission.

— The Bahamas Securities Commission (@SCBgov bs), November 18, 2022
According to SCB, last week’s action was justified by the need for “prompt temporary regulatory action to protect the interests of clients and creditors of FDM.”

The most recent information might provide some insight into several financial movements that were noticed last week.

Analysts estimate that $663 million was lost as a result of a series of suspicious transactions that were identified by the cryptocurrency community on November 11 in wallets connected to FTX and FTX.US. While the remaining funds were thought to have been transferred by FTX to secure storage, $477 million were suspected to have been stolen.

The amount of FDM’s digital assets that were shifted as a result of the SCB ruling was not mentioned in the SCB announcement, nevertheless.

SCB has been contacted by Cointelegraph for clarification, but as of the time of publication, no response had been received.

The order would have been issued just two days after the commission on November 10 froze the assets of FDM, stopped FTX’s registration in the nation, and deposed the FTX directors of their authority.

It also specified at the time that any transfer of FDM’s assets required clearance from a provisional liquidator appointed by the Supreme Court.

Over the past week, the drama surrounding FTX’s bankruptcy has persisted.

FDM applied for Chapter 15 bankruptcy protection in a court in New York on November 15 in an effort to have the Bahamian liquidation procedures recognized in the United States.

In his submission, Brian Simms, the court-appointed provisional liquidator in charge of FTX Digital Markets’ bankruptcy proceedings in the Bahamas, stated that FDM was not entitled to file for Chapter 11 in the United States and disputed the filing’s legality.

In an emergency motion filed on November 17, FTX Trading Limited argued that in order to “end the chaos and to ensure that assets can be secured and marshaled in an orderly process,” both the Chapter 11 case and all proceedings pertaining to Chapter 15 filings should take place in the Delaware-based U.S. Bankruptcy Court.

Additionally, according to the same petition, there is “credible information that the Bahamian government is responsible for directing unlawful access to the Debtors’ systems for the goal of collecting digital assets of the Debtors—that took place after the initiation of these lawsuits.”