Bahamas Govt. Ordered FTX to Transferred Funds to Government Wallet

[fullhdpixel]

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.

Of course this is not what we called a hack and there is no need for him to hack the system that he can access freely because he is the owner of it right? It can also be called as an inside job.

I think SBF do also think twice if he will follow the order or not but decided to follow it at the end, maybe because he think he will be save by the Bahamas government or maybe he has a special connection with them? He knows that the money is going to be confiscated soon by the authorities so for him, it's better if he can just send it out to the people that he knew. This sounds a nice plan but unfortunately, it was still discovered out. Poor SBF.

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[adaseb]

I have no idea how this bankruptcy is working exactly.

Both USA and Bahamian government are saying they are in charge of the bankruptcy. We are getting reports from both agencies they are working on recovering funds. However how can both of them do this exactly?

Very confused.

[AverageGlabella]

I have no idea how this bankruptcy is working exactly.

Both USA and Bahamian government are saying they are in charge of the bankruptcy. We are getting reports from both agencies they are working on recovering funds. However how can both of them do this exactly?

Very confused.

The Bahamian government has seized the funds and the company is in free fall. ftx are claiming that they can get back the funds but they prolly can not. They would need to petition to the government and have them accept that petition which is not going to happen. They are living in dream land and are probably trying to convince investors that they can recover to try and salvage anything they can from the company until it does die. ftx has died there is no way back for them from here.

[istiak2277]

I have no idea how this bankruptcy is working exactly.

Both USA and Bahamian government are saying they are in charge of the bankruptcy. We are getting reports from both agencies they are working on recovering funds. However how can both of them do this exactly?

Very confused.

The Bahamian government has seized the funds and the company is in free fall. ftx are claiming that they can get back the funds but they prolly can not. They would need to petition to the government and have them accept that petition which is not going to happen. They are living in dream land and are probably trying to convince investors that they can recover to try and salvage anything they can from the company until it does die. ftx has died there is no way back for them from here.

First they convert all of their funds in to ETH and now they are converting it to BTC so that no one can freeze it. It looks like they wants to keep those for themself. Now its confirmed that FTX investors would never get their funds back. I rally feel sorry for those who lose everything in FTX and People should understand that centralized exchange is not trusted no matter how big it is.

[AverageGlabella]

I have no idea how this bankruptcy is working exactly.

Both USA and Bahamian government are saying they are in charge of the bankruptcy. We are getting reports from both agencies they are working on recovering funds. However how can both of them do this exactly?

Very confused.

The Bahamian government has seized the funds and the company is in free fall. ftx are claiming that they can get back the funds but they prolly can not. They would need to petition to the government and have them accept that petition which is not going to happen. They are living in dream land and are probably trying to convince investors that they can recover to try and salvage anything they can from the company until it does die. ftx has died there is no way back for them from here.

First they convert all of their funds in to ETH and now they are converting it to BTC so that no one can freeze it. It looks like they wants to keep those for themself. Now its confirmed that FTX investors would never get their funds back. I rally feel sorry for those who lose everything in FTX and People should understand that centralized exchange is not trusted no matter how big it is.

Not sure what they are doing and I do not want to make allegations but it does look weird that they are converting it to ETH 1st. It will be interesting when they release their full public statement and the reasons why they are doing what they are doing. There has not been a lot of PR from the Bahamian government

[adaseb]

Basically there is a white hat and a black hat wallet which flowed out of the FTX hot wallet when they claimed bankruptcy.

Last night they dumped like $50M ETH and traded for BTC. And last week they dumped many alts and traded for Dai, very suspicious.

The other wallet is some multisig wallet and it’s legit. They won’t be selling anything until the court starts.

[EarnOnVictor]

This is indeed a piece of true news as the "The Securities Commission of The Bahamas" confirmed. It is the best practice in case a company goes insolvent. I only wonder why a new CEO was announced last week when it is clear that the company can't meet its liabilities. The documentary I watched on what really transpired is so shocking, and it's an eye-opener for me to be more careful with where I entrust my money. Sam Bankman-Fried is just a gambler and villain that was mistaken to be a hero.

Please, read the warning of @theymos here in case you missed it: https://bitcointalk.org/index.php?topic=5421039.0

[stompix]

Both USA and Bahamian government are saying they are in charge of the bankruptcy. We are getting reports from both agencies they are working on recovering funds. However how can both of them do this exactly?

Very confused.

Because they aren't talking about the same company.

The funds frozen in the Bahamas belong to FTX Digital Markets Ltd, a subsidiary of FTX Trading Ltd.
FTX Trading Ltd has filed for Bankruptcy protection in Delaware US.

The US company Chapter 11 in Delaware:
https://pacer-documents.s3.amazonaws.com/33/188450/042020648197.pdf
Then they filed for Chapter 15 Bankruptcy in the US in New York, this is for recognition of a foreign bankruptcy claim
https://storage.courtlistener.com/recap/gov.uscourts.nysb.314256/gov.uscourts.nysb.314256.2.0.pdf

This is the mess between US and Bahamas, not to mention that other branches have filed for bankruptcy in their own countries, like Australia.

ASIC has suspended the Australian financial services licence of FTX Australia Pty Ltd (AFS licence 323193) until 15 May 2023 after it was placed into voluntary administration on 11 November 2022.
On 11 November 2022, John Mouawad, Scott Langdon and Rahul Goyal of KordaMentha were appointed as voluntary administrators of FTX Australia and its subsidiary FTX Express Pty Ltd, which operates a digital currency exchange that is not regulated by ASIC

[mich]

I was overjoyed to read headlines that the Bahamas government ordered FTX to transfer their fund to a government wallet. FTX committed serious fraud at the cost of people’s money and did not deserve to get away with all of these bad things they have done.
The Government of the Bahamas did the proper thing because I was hesitant if they were to step in and show their authority. I was not personally affected by all of this since I don’t keep my coins on the exchange, but I know that there are those who do not have access to their coins.
So hopefully when this is all over, they can get their money back. Being optimistic to know the Government of Bahamas has control of the stolen coins.

[adaseb]

So how is this going to work exactly.

FTX US has a bankruptcy hearing in USA.
FTX Intl has a bankruptcy hearing in Bahamas.
FTX Japan in Japan
FTX Australia in Australia.

However how do they split the money exactly? They had horrible accounting. How can they tell which money belongs to which country? Seems impossible to address. This is why I am confused why they have all these hearings everywhere.

[goaldigger]

So how is this going to work exactly.

FTX US has a bankruptcy hearing in USA.
FTX Intl has a bankruptcy hearing in Bahamas.
FTX Japan in Japan
FTX Australia in Australia.

However how do they split the money exactly? They had horrible accounting. How can they tell which money belongs to which country? Seems impossible to address. This is why I am confused why they have all these hearings everywhere.

Probably big investors are came from those countries and that’s why they get the attention of the government to run after FTX and recover their money as much as possible. Also FTX files for bankruptcy and that’s why they have hearings for this. If they are expecting to still get the funds for FTX then it should be distributed back to every users and holder on that exchange. This might be the dead end for FTX but many are still expecting for their money to be returned.

[adaseb]

Sbf claimed many times that FTX USA is solvent and so is FTX Japan. However this is catch 22. Those two entities might be solvent. However if they pay out everyone then the people who got funds trapped into FTX intl will get less.

Since he included FTX us in the bankruptcy it seems that he closed that door of making everyone whole at FTX US. And the pie is going to have to be split even thinner between all the users who had a balance at the time of bankruptcy.

[stompix]

So how is this going to work exactly.

FTX US has a bankruptcy hearing in USA.
FTX Intl has a bankruptcy hearing in Bahamas.

No, it's not like that!
There is no FTX intl, there is FTX Digital Markets Ltd., the subsidiary of  FTX Trading Ltd , both of them were registered in Bahamas.
FTX Digital Markets Ltd kept their bankruptcy with the Bahamas authorities, while FTX Trading Ltd agreed with the liquidators appointed by the Bahamas authorities to file for chapter 11 in Delaware US.

However how do they split the money exactly? They had horrible accounting. How can they tell which money belongs to which country?

Money doesn't belong to a country!
The money belongs in both situations to the creditors that will file for a claim, there is no money going to the US or Bahamas government, all the assets will be frozen and retrieved by the ones appointed at restructuring or in case this is deemed impossible liquidate the company and pay up the how much as recovered to the debtors.
It's not like FTX Australia will pay first Australians then the users from New Zeeland and last the ones from France.

As for how will they be split it's simple, the money either belongs to FTX DM or to FTX Trading, and there will be no split in any moving assets from one side to another.

Sbf claimed many times that FTX USA is solvent and so is FTX Japan. However this is catch 22. Those two entities might be solvent. However if they pay out everyone then the people who got funds trapped into FTX intl will get less.

Again, it doesn't work like this, each of the companies will have to pay back their own claims first if anything is left will there be a complete liquidation nd see who gets the extra or it might be that the exchange will be kept running as a separate entity! There is no pooling of funds and paying randomly.