Thursday, June 20, 2024
28 C
Brunei Town

FTX says Bahamas regulators hold USD296M, not USD3.5B of company’s assets

CNA – FTX on Friday disputed claims by the Securities Commission of the Bahamas (SCB) that the regulator was holding USD3.5 billion of the bankrupt cryptocurrency exchange’s assets.

When the Commission seized the digital assets of FTX in November, they were worth just USD296 million, FTX said in a statement. FTX urged the commission to “clear up any confusion” about the assets it holds and their value.

The regulator began liquidation proceedings against FTX Digital Markets Ltd, the company’s Bahamas-based unit, in November. FTX said it will seek the return of any assets seized because FTX DM is only a “local service company” which does not own the exchange or any of the cryptocurrency seized.

SCB said on Thursday it had seized over USD3.5 billion in cryptocurrency and was holding those funds for future repayment to FTX’s customers and other creditors.

SCB did not identify the type of cryptocurrency seized or say how it was valued.

FTX said on Friday that most of the seized cryptocurrency was in the form of FTX’s proprietary FTT tokens. The seized FTT tokens would have plunged in value to USD167 million as of December 20, and the SCB may be unable to find a buyer for such a large stake even at that lowered price, FTX said.

SCB did not immediately respond to a request for comment on Friday.

FTX logo are seen through broken glass. PHOTO: CNA