Bahamian Regulator Rejects FTX Claims Regarding Value of Seized Assets | Crypto

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The Bahamian Securities Commission says debtors of the failed cryptocurrency exchange had incomplete information.

The Bahamas Securities Commission (SCB) has dismissed FTX’s claims about its Bahamas unit’s digital assets held by the regulator, saying debtors of the failed cryptocurrency exchange had incomplete information.

Last month, SCB said it had seized more than $3.5 billion in cryptocurrency from the unit, FTX Digital Markets, which it was holding for future reimbursement to customers and other creditors.

FTX disputed SCB’s calculations, saying its digital assets seized in November were only worth $296 million, not $3.5 billion.

These public assertions by Chapter 11 debtors were based on incomplete information, the regulator said in a statement Monday.

There was no immediate response from FTX, which has been at odds with Bahamian officials since filing for bankruptcy protection on Nov. 11.

Bahamian officials requested access to FTX records to help liquidate FTX Digital Markets, but the company’s US bankruptcy team said it does not trust them with the information.

FTX founder and former chief executive Sam Bankman-Fried was arrested last month on fraud charges and is expected to stand trial on Tuesday before U.S. District Judge Lewis Kaplan in Manhattan federal court.

The firm’s new chief executive, John Ray, said the exchange lost $8 billion in client money.

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