Home industry cryptocurrency bahamas regulators hold $296M of FTX's assets, not $3.5B, the company says

Bahamas regulators hold $296M of FTX's assets, not $3.5B, the company says

Cryptocurrency

CIO Bulletin
2023-01-02

The Securities Commission of the Bahamas (SCB) stated that it held $3.5 billion of the assets of the bankrupt cryptocurrency exchange. According to FTX, this is not true.

In November 2022, when the Commission seized FTX's digital assets, they were only worth $296 million, FTX said in a statement. FTX asked the commission to clear up any confusion about how much the company's assets are worth.

In November 2022, the regulator initiated liquidation proceedings against FTX Digital Markets Ltd., the Bahamas-based subsidiary of the company. FTX said that it will try to get any seized assets back because FTX DM is just a local service provider and does not own the seized cryptocurrencies or the FTX.com exchange.

SCB said that it had seized cryptocurrencies worth more than $3.5 billion and was keeping them to pay back FTX's customers and other creditors in the future.

The SCB did not identify the type or value of the seized cryptocurrency.

The majority of the seized cryptocurrency, according to FTX, was in the form of FTT tokens. As of December 20, the seized FTT tokens would have been worth $167 million, and the SCB may be unable to find a buyer for such a large stake even at this reduced price, according to FTX.