Bahamas regulator rejects FTX’s claims about seized assets’ value | Crypto
The Bahamas Securities Commission said debtors of the bankrupt crypto exchange had ‘incomplete information’.
The Securities Commission of the Bahamas (SCB) has denied FTX’s claims about the Bahamas unit’s digital assets held by the regulator, saying that the debtors of the bankrupt crypto exchange have “incomplete information”.
Last month, SCB said it had seized more than $3.5 billion in cryptocurrencies from its FTX Digital Markets unit, which it was holding to repay future debt to customers and other creditors.
FTX objected to SCB’s calculations, saying its digital assets seized in November were only worth $296 million, not $3.5 billion.
“Such public assertions by Chapter 11 debtors are based on incomplete information,” the regulator said in a statement Monday.
There was no immediate response from the FTX, which has been at odds with Bahamian officials since filing for bankruptcy protection on Nov.
Bahamas officials sought access to FTX records to help liquidate FTX Digital Markets, but the company’s U.S. bankruptcy team said it did not trust them to provide the information.
Founder and former CEO of FTX, Sam Bankman-Fried, was arrested for fraud last month and is expected to be arraigned Tuesday before U.S. District Judge Lewis Kaplan in Manhattan federal court.
The company’s new CEO, John Ray, said the exchange lost $8 billion in customer funds.