The cryptocurrency industry witnessed the major collapse of a giant company in the crypto industry earlier this month, which eventually led to FTX filing for Chapter 11 bankruptcy.

Soon after, there were suspicious movements from one of her accounts, many linking it to a hack or even an insider transfer.

The Bahamas Securities Commission came forward and clarified on Twitter by shedding more light on the events, reporting that the regulator had seized the funds.

came in Statement:

The Authority, in exercising its powers as a regulator and by decision of the High Court of The Bahamas, took action directing the transfer of all digital assets of FTX Digital Markets Ltd to a digital wallet controlled by the Authority for safekeeping.

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The watchdog said its move was in line with its intentions to protect clients and creditors of the bankrupt trading platform.

The Bahamas regulator added that it would work with other global watchdogs to address matters affecting creditors, customers and shareholders.

FTX filed for bankruptcy after Binance backed out of a potential acquisition in the middle of the month.

A day later, reports began to emerge that some of the wallets of the platform founded by Sam Bankman Fred had been drained, the total amount approaching $500 million at the time.

Some speculated that this might be an inside job and warned that Bankman, who recently resigned as chief executive, was trying to flee with the money.

To make the picture clearer, the Bahamas Oversight Authority clarified that it was behind the conversion process.

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