FTX Debtors Urge Bahamas Commission to Explain Crypto Value of Seized Assets

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Leon Neal

FTX Trading and its Debtors notified the Bahamas Securities Commission that neither Sam Bankman-Fried, Gary Wang, or the Bahamas Securities Commission had the right to take cryptocurrency from FTX Debtors, it said. he said in a statement Friday evening.

Late Thursday, the Securities Commission said it had taken control of FTX’s digital assets valued at more than $3.5 billion as of Nov. 12 because it “determined there was a significant risk of imminent dissipation “if they remained under the control of FTX. This statement did not identify the type of digital assets seized.

The debtors said they have evidence that approximately 195 million FTT tokens (FTT-USD), 1,938 ethereum (ETH-USD) and other miscellaneous coins of no substantial value were transferred, without their authorization, after the company filed for Chapter 11 bankruptcy. Blockchain information shows that this crypto is held in a single digital wallet on Fireblocks.

The value of the cryptocurrency at spot prices at the time of the transfer was approximately $296 million, the debtors said, citing etherscan.io. This value, however, assumes that the FTT tokens (FTT-USD) in the wallet could be sold at the spot price at that time. The value of the same crypto at spot prices as of 2:00 p.m. ET on December 30 was around $167 million.

“FTX Debtors urge the Bahamas Commission to clear up any confusion created by their recent statements and provide the public with accurate information regarding the seized cryptocurrency and how it was valued for purposes of these statements,” the statement read. debtors.

Earlier on Friday, FTX Japan and Liquid Japan aim to resume withdrawals in February.

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