FTX Under Fire As Bahamas Lawyers Demand Access To Customer Database

Bahamas lawyers reportedly asked for access to the FTX customer database, according to a CNBC report from December 9. It was demanded in an urgent motion submitted to a bankruptcy judge in Delaware.

The request submitted by the attorneys acting on behalf of the Bahamas Securities Commission outlined prior attempts to gain access to FTX’s database that had been unsuccessful. As a result, attorneys asserted that FTX’s employees and attorneys prevented the Bahamian government from accessing critical financial data.

As stated in the report:

While the Joint Provisional Liquidators are happy to engage in dialogue with the U.S. Debtors, their refusal to promptly restore access has frustrated the ability of the Joint Provisional Liquidators to carry out their duties under Bahamian law and placed FTX Digital’s assets at risk of dissipation.

The application stated that granting this relief would not hinder or burden the US bankruptcy proceedings.

The contested database consists of Wallet addresses, client balances, deposit and withdrawal histories, and other ostensibly personal information. Aside from that, it contained accounting data and information on trading. Furthermore, the database used Amazon Web Services (AWS) databases and Google Cloud Portal for hosting.

Examining Funds Taken From Cryptocurrency

In addition, a liquidity difficulty at FTX, combining assets with the affiliated hedge fund Alameda Research, led to the exchange filing for bankruptcy last month. Sam Bankman-Fried, the founder of FTX, will testify before American lawmakers the following week. Before the collapse, estimates of his pre-crash net worth were $16 billion.

Related Reading | Argo Blockchain Stocks Suspended In UK And Us

According to a Wall Street Journal story, the new management at FTX hired a team of financial forensic investigators on December 7 to locate billions of dollars worth of missing cryptocurrency from consumers. Hackers stole over $450 million from FTX and FTX.US wallets last month.

Alix Partners, a financial advisory firm, which will be responsible for the project’s management. The group is headed by Matt Jacques, a former chief accountant at the (SEC).

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