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$477M FTX ‘hack’ was a Bahamian government asset seizure

marketwatch.com

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Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#11

Post by sanxiyn »

texaslonghorn5 wrote: post #2

interesting, since FTX was headquartered in the bahamas this seems lawful and not unreasonable. though some will argue the government doesn't have the right to do that, I think you sacrifice your protection when you commit fraud. how quickly should the bahamas have announced about the asset seizure? is it common in other countries to not comment about (seizures in) ongoing investigations?

The news article doesn't state the legal authority, but the statement from Securities Commission of the Bahamas of course does. "Under the Digital Assets and Registered Exchanges Act, 2020 (DARE Act), the Commission has the authority..."

The government has the right to do this because FTX agreed to this.

Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#12

Post by camjohnson26 »

llamataboot wrote: post #9
rippercushions wrote: post #5

Earlier quoted context omitted.

The announcement was from the new FTX under emergency CEO Ray, not the old FTX under SBF. And the Bahamas claims that the specific FTX company that did the transfers, FTX Digital Assets, was not a part of the bankruptcy proceedings and that SBF was still its CEO. Finally, new-FTX did not say they were "hacked", only that the transfers were not authorized by them.

SBF straight up said multiple times it was a hack in his leaked talks with a vix reporter many days alter

It’s pretty simple, he was lying.

Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#13

Post by sanxiyn »

stefan_ wrote: post #7
booleandilemma wrote: post #4

Good, I'm glad it wasn't SBF or another insider.

Well it seems it was SBF in the bed with the Bahamian government.

Do you have any evidence? At a glance, this seems to be Bahamian civil servants diligently doing their duty that was given.

Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#14

Post by bmitc »

initplus wrote: post #8
bmitc wrote: post #3

Why did FTX publicly announce it as a hack then?

FTX chose to file for bankruptcy in America. There is a jurisdictional dispute between the US and the Bahamian court over where the bankruptcy proceedings should take place. In my view FTX chose to incorporate in the Bahama's for a reason, and that reason wasn't the transparency and integrity of the Bahamian legal system.

What does that have to do with the announcement of the unauthorized access?

Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#15

Post by KptMarchewa »

sanxiyn wrote: post #13
stefan_ wrote: post #7

Earlier quoted context omitted.

Well it seems it was SBF in the bed with the Bahamian government.

Do you have any evidence? At a glance, this seems to be Bahamian civil servants diligently doing their duty that was given.

SBF discussion with Vox reporter is a big hint.

Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#16

Post by phire »

initplus wrote: post #8
bmitc wrote: post #3

Why did FTX publicly announce it as a hack then?

FTX chose to file for bankruptcy in America. There is a jurisdictional dispute between the US and the Bahamian court over where the bankruptcy proceedings should take place. In my view FTX chose to incorporate in the Bahama's for a reason, and that reason wasn't the transparency and integrity of the Bahamian legal system.

They didn't incorporate in the Bahamas.

They incorporated in "Antigua and Barbuda", which is a very seperate country. The only relationship FTX has with Bahamas, is the location of their headcounters, and a single wholly-owned subsidiary that probably didn't hold much in the way of funds.

Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#17

Post by nullc »

phire wrote: post #16
initplus wrote: post #8

Earlier quoted context omitted.

FTX chose to file for bankruptcy in America. There is a jurisdictional dispute between the US and the Bahamian court over where the bankruptcy proceedings should take place. In my view FTX chose to incorporate in the Bahama's for a reason, and that reason wasn't the transparency and integrity of the Bahamian legal system.

They didn't incorporate in the Bahamas. They incorporated in "Antigua and Barbuda", which is a very seperate country. The only relationship FTX has with Bahamas, is the location of their headcounters, and a single wholly-owned subsidiary that probably didn't hold much in the way of funds.

> The only relationship FTX has with Bahamas,

The Bahamas has the only relationship that actually mattered: apparently SBF was physically in their custody.

Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#20

Post by aorloff »

woodruffw wrote: post #19

Maybe this is a stupid question, but how ? Was the Bahamas' SEC holding its own copies of FTX's keys? I thought the entire point of these schemes was that this kind of seizure-by-force wasn't possible (absent exploits or insiders).

I'm assuming they walked over to the person holding the keys and handed them a court order.
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