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 the
FTX.com exchange or any of the cryptocurrency seized.
SCB 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.
SCB did not identify the type of cryptocurrency seized or say
how it was valued.
FTX said 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 $167 million as of Dec. 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 Friday.
FTX has been at odds with Bahamian officials ever since filing
for bankruptcy protection on Nov. 11. The Bahamian officials
have asked for access to FTX's records to assist with the
liquidation of FTX DM, but FTX's U.S. bankruptcy team said they
do not trust Bahamian officials with that information.
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.
(Reporting by Dietrich Knauth and Niket Nishant; Editing by
Shailesh Kuber and Daniel Wallis)
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