The attorneys acting on instructions from the Securities Commission of Bahamas, submitted an emergency at the Delaware bankruptcy court in a pleading to gain access to the users’ database at the embattled FTX. Citing the need to complete the investigations, the Bahaman attorneys submitted that scrutinizing the database holding international users’ information was fundamental to validate the evidence collected.
The motion filed under the principle of emergency indicated that previous attempts by the Securities Commission of Bahamas to gain access were futile. The Bahamian attorneys disclosed to the Delaware bankruptcy judge that FTX counsel and employees had denied them access to vital financial information.
Relief Sought by Bahamian Attorneys
The filing pointed out that the Bahamas Securities Commission considered two databases to hold critical information, including Google Cloud Portal and Amazon Web Services (AWS). In particular, the Bahamian attorneys pursued personal details, including users’ balances, addresses, transaction records, accounting trails, and trades. The lawyers added that the decision by the Delaware court to grant the relief would not hurt the ongoing bankruptcy proceedings.
Also read:The filing demonstrated that the defunct crypto exchange utilized Google services for nonresident data analytics while AWD stored users’ information.
The attorneys noted that the Joint Provisional liquidators lauded the detailed dialogues with the debtors. Nevertheless, they regretted that the refusal by FTX to restore access to the users’ databases is frustrating the liquidators’ capacity to execute duties as stipulated under Bahamian law. The attorneys decried the frustrations by FTX’s counsel and employees that made assets trapped within FTX Digital vulnerable to dissipation risks.
Engaging Forensics Firms to Trace Missing Assets
Meanwhile, FTX management confirmed hiring Financial advisory company AlixPartners on December 7 to investigate missing users’ funds, currently estimated to exceed $450 million. The announcement disclosed the scope of the forensics firms would involve tracing crypto assets.
FTX mandated AlixPartners to aid the recovery of missing digital assets by complementing the blockchain-based Chainalysis input in tracing the stolen cryptos.
AlixPartners chief executive Matt Jacques confessed to expediting the recovery of the $450 million stolen assets. He added that the preliminary investigations indicate the hacker later moved the digital assets through peel chaining technique by subdividing the holdings into smaller units laundered across multiple wallets.
Editorial credit: A. Barbara/Shutterstock.com
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.