Bahamian Regulator seizes 296 million FTX assets-FTX
2022.12.31 02:03
Bahamian Regulator seizes 296 million FTX assets-FTX
Budrigannews.com – On Friday, FTX refuted claims made by the Securities Commission of the Bahamas (SCB) that it was holding $3.5 billion of the assets of the bankrupt cryptocurrency exchange.
FTX stated in a statement that its digital assets were only worth $296 million when the Commission seized them in November. “Clear up any confusion” regarding the assets it holds and their value, FTX urged the commission to do.
In November, the company’s Bahamas-based subsidiary FTX Digital Markets Ltd. was put into liquidation by the regulator. Because FTX DM is only a “local service company” and does not own the FTX.com exchange or any of the seized cryptocurrency, FTX stated that it will seek the return of any seized assets.
Thursday, SCB stated that it had seized over $3.5 billion in cryptocurrency and was storing the funds to be repaid to customers of FTX and other creditors in the future.
The SCB didn’t say what kind of cryptocurrency was seized or how much it was worth.
Friday, FTX stated that FTX’s proprietary FTT tokens comprised the majority of the seized cryptocurrency. According to FTX, the SCB may not be able to find a buyer for such a large stake even at that reduced price, as the value of the seized FTT tokens would have plummeted to $167 million as of December 20.
Since FTX filed for bankruptcy protection on November 11, it has been at odds with Bahamian officials. FTX’s U.S. bankruptcy team stated that they do not trust Bahamian officials with that information. The Bahamian officials have requested access to FTX’s records in order to assist with the liquidation of FTX DM.
Sam Bankman-Fried, founder and former CEO of FTX, was arrested on fraud charges and is scheduled to appear in federal court in Manhattan on January 3, 2023, before U.S. District Judge Lewis Kaplan. John Ray, the new CEO of FTX, claims that the exchange lost $8 billion in customer funds.
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