Bahamas Govt. Ordered FTX to Transferred Funds to Government Wallet

[GreatArkansas]

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.

[adaseb]

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.

[mk4]

"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?

[dimonstration]

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.

[OgNasty]

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.

[Iranus]

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.

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.

[TravelMug]

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.

[stompix]

This is all over Twitter now. Different media already released this too.

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

In addition, in connection with investigating a hack on Sunday, November 13, Mr. Bankman-Fried and Mr. Wang stated in recorded and verified texts that “Bahamas regulators” instructed that certain post-petition transfers of Debtor assets be made by Mr. Wang and Mr. Bankman-Fried (who the Debtors understand were both effectively in the custody of Bahamas authorities) and that such assets were “custodied on FireBlocks under control of Bahamian gov’t”.

The Debtors thus have credible evidence that the Bahamian government is
responsible for directing unauthorized access to the Debtors’ systems for the purpose of obtaining
digital assets of the Debtors—that took place after the commencement of these cases. The appointment of the JPLs and recognition of the Chapter 15 Case are thus in serious question. It Case 22-11068-JTD Doc 22 Filed 11/17/22 Page 5 of 11 {1368.002-W0069002.} appears that the automatic stay has been flaunted, by a government actor no less. This is no time to be arguing over venue

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!

[hugeblack]

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.

[el kaka22]

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.

[OgNasty]

"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?

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.

[cryptomaniac_xxx]

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 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

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.

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.

[Johnyz]

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. 

[serjent05]

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.

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.

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.

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.

[blockman]

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.

If I understand correctly, This is just an speculation and no official statement coming from bahamas government that they indeed command this.

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/)

[AverageGlabella]

He’s a con artist that took bleeding heart liberals for a ride.

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.

[YOSHIE]

So for me, is this good news or bad news if it's true that the Bahamas government already got these funds from FTX?

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.

FTX was caught off-guard when assets were transferred on November 13 and initially believed that it had been hacked, according to its court filing.

While investigating the hack, FTX learned that Bankman-Fried and FTX co-founder Gary Wang made "unauthorized" transfers at the direction of the Bahamian government while "effectively in the custody of Bahamas authorities," according to the filing.

FTX accused Bankman-Fried of working with the Bahamas liquidators to "undermine" the U.S. bankruptcy case and shift assets overseas.

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.

[LittleBitFunny]

I don't know how much longer people will believe in hacking exchanges by hackers when 99% of the time the hackers are exchange owners. It's the easiest thing to claim that an exchange has been hacked and funds are missing, forgive us. It is especially hard to believe this when SBF is under investigation and has declared bankruptcy. Only a fool would believe in such coincidences.

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.

[Pierre 2]

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.

[DudeAtWork420]

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.