Bahamas Authorities Have DFTX’s Allegations About the Worth of the Confiscated Assets

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FTX’s claims concerning the digital assets of its Bahamas business held by the regulator have been rejected by the Securities Commission of the Bahamas (SCB), which said that the creditors of the defunct cryptocurrency exchange had “incomplete information.”

The SCB said a month ago that it had seized more than $3.5 billion in cryptocurrencies from the entity known as FTX Digital Markets. The cryptocurrency was being held by the SCB in preparation for future payments to clients and other creditors.

FTX argued that SCB’s figures were incorrect and said that the digital assets confiscated by SCB in November were only worth $296 million rather than $3.5 billion.

The regulating body stated in a statement that they will release on Monday that “such public statements by the Chapter 11 debtors were based on faulty facts.”

FTX, which has been at conflict with Bahamian authorities since since it filed for protection under the bankruptcy law on November 11, did not immediately respond to our inquiry.

Bahamas authorities have requested access to FTX’s documents in order to assist in the liquidation of FTX Digital Markets; however, the US bankruptcy team representing the firm has said that they do not trust Bahamas officials with the information.

Sam Bankman-Fried, the founder of FTX and a former chief executive officer, was taken into custody on fraud-related allegations one month ago. He is scheduled to be arraigned in front of United States District Judge Lewis Kaplan in Manhattan federal court on Tuesday.

According to the company’s new chief executive, John Ray, the exchange was responsible for the loss of $8 billion of consumer funds.

 

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