The Securities Commission of The Bahamas has hit back at collapsed crypto exchange FTX's accusations that the country had directed unauthorized access to transfer assets off the platform after FTX filed for bankruptcy protection in the US.

The regulator said in a statement on 23 November that the allegations were  "intemperate and inaccurate," and said it had sought the order from the country's Supreme Court to protect the embattled exchange's digital assets against "the risks associated with hacking and compromise."

The Securities Commission of The Bahamas said: "Given the nature of digital assets, and the risks associated with hacking and compromise, the Commission determined that placing FDM into liquidation was not sufficient to protect the customers and creditors of FDM. 

"Accordingly, on 12 November 2022, the Commission sought an additional Order from the Supreme Court of The Bahamas for authority under the DARE Act to transfer all digital assets of FTX into digital
wallets under the exclusive control of the Commission for the benefit of clients and creditors of FDM.

"It is unfortunate that in Chapter 11 filings, the new CEO of FTX Trading Ltd. misrepresented this timely action through the intemperate and inaccurate allegations lodged in the Transfer Motion. It is also
concerning that the Chapter 11 debtors chose to rely on the statements of individuals they have (in other filings) characterized as unreliable sources of information and potentially "seriously compromised."

The regulator continued: "Further, the statements made by the purported officers of FTX Trading Ltd. and the other purported Chapter 11 debtors - that they have suffered significant thefts, that their systems were compromised, and that they continue to face new hacking attempts - reinforces the wisdom of the Commission's prompt action to secure these digital assets.

"The Commission will continue to evaluate the situation, continue to act in accordance with directions issued by the Supreme Court of The Bahamas, collaborate with other supervisory authorities and take
such further actions as needed to preserve the assets of FDM and to safeguard the interests of customers and creditors of FDM.

"In addition, the Commission will continue to investigate the facts and circumstances regarding FTX's liquidity crisis and any potential violations of Bahamian law and hold any responsible companies and
individuals accountable, in cooperation with other regulatory agencies and law enforcement both in The Bahamas and in other affected countries in connection with their own investigations.

"The Commission also looks forward to continuing to cooperate with the authorities in other jurisdictions to ensure the cooperative and vigorous resolution of all necessary proceedings to effectuate those ends."