FTX Says Bahamas Regulators Hold Only $296 Million Of Company’s Assets

Key Points:

  • The Securities Commission of the Bahamas asserted that it owned $3.5 billion worth of assets belonging to the bankrupt cryptocurrency exchange, but FTX refuted this assertion.
  • The digital assets of the exchange were only worth $296 million when the Commission confiscated them in November, the company claimed in a statement.
  • Since mas, FTX Digital Markets is merely a “local service company” and does not hold the exchange or any of the cryptocurrencies seized, the company said it would seek the recovery of any assets that have been taken.
According to Reuters, FTX refuted the statement that the Securities Commission of the Bahamas (SCB) holds $3.5 billion worth of the exchange digital assets.
FTX Says Bahamas Regulators Hold Only $296 Million Of Company's Assets

FTX said in a statement that when SCB seized its digital assets in November of this year, they were worth only $296 million.

The exchange urged SCB to clarify its holdings and their value. In November, SCB began the liquidation of its Bahamian subsidiary, FTX Digital Markets Ltd.

The company said it would seek to return all seized assets, as FTX DM is only a “local services company” and does not own the exchange or any seized cryptocurrencies.

SCB said on Thursday that it had controlled more than $3.5 billion in digital assets of the exchange, which will be used to repay the customers and other creditors in the future. SCB did not specify the type of assets or their value.

FTX Says Bahamas Regulators Hold Only $296 Million Of Company's Assets

FTX and Bahamian authorities have been at odds since the company requested bankruptcy protection on November 11. In order to help with the liquidation of FTX DM, Bahamian officials have requested access to the exchange data, but the US bankruptcy team has stated that they do not trust Bahamian officials with that information.

As Coincu reported, federal authorities are looking into a number of cryptocurrency transactions that web analysts have connected to digital wallets linked to disgraced crypto tycoon Sam Bankman-Fried. If Bankman-Fried is doing the transactions, prosecutors from the Southern District of New York (SDNY) are investigating whether he is merely shifting his own assets or cashing them out without permission.

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