FTX on Friday disputed claims by the Securities Commission of the Bahamas that the regulator was holding $3.5-billion of the bankrupt cryptocurrency exchange’s assets.
When the Commission seized the digital assets of FTX in November, they were worth just $296-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 theSCB said Thursday it had seized over $3.5-billion in cryptocurrency and was holding those funds for future repayment to FTX’s customers and other creditors.
FTX’s founder and former CEO Sam Bankman-Fried was arrested on fraud charges and is expected to arraigned on Jan. 3, 2023, before U.S. District Judge Lewis Kaplan in Manhattan federal court. FTX’s new chief executive John Ray has said that the exchange lost $8-billion of customer money.