Hope for FTX Users After the Seizure of $3.5 Billion

According to a press release, the Bahamas security commission reports that worth 3.5 billion dollars of user funds have been frozen. Following this news, FTX Chief Executive Officer Mr.

Bankman Fried announced that the exchange is receiving attacks. However, the Bahamas security commission remains to have major control over the frozen assets awaiting court proceedings. Moreover, if the courts rule in favor of users and investors, a refund would be made.

This news brings hope to FTX users knowing that a refund might be made in the long run after FTX filed for bankruptcy in November. Meanwhile, Mr. Bankman lands himself in trouble after trying to transfer assets from the Alameda accounts to conceal the funds.

Just after Mr. Sam Bankman-Fried was released on bail, he attempted to cash out a large sum amounting to about 648 thousand dollars. Following this attempt, it is noted that the account receiving funds has a history of receiving funds from Alameda Research.

Noting the first transaction made by this account was also from Alameda accounts, disbursing them to various accounts and eventually withdrawing them secretly with time. A complaint firm further noted that Mr. Bankman developed a counterfeit website as an Alameda subordinate.

Additionally, Mr. Bankman redirected user funds to this website to conceal that Alameda’s research still runs and controls these assets. Following these events, it is noted that FTX co-founders benefitted heavily from these arrangements, others pleading guilty to these allegations and the collapse of FTX.

In their pleading, they accepted the allegation of hiding the truth from investors and consumers, plus the fact that they secretly had access to large sums of cash in terms of a loan or borrowed cash, giving them special privileges on FTX exchanges.

The grilling of FTX’s co-founder

However, all assets remain under the exclusive control of the Bahamas Security Commission. FTX exchange representatives nonetheless challenged this decision, claiming a bridge of privacy, reporting that they cannot trust the Bahamas government with the company’s internal records that can use to attack the company and illicit funds from its account.