FTX Debtors and the Bahamas regulator lay different claims on amount transferred

• FTX Debtors states that the crypto transferred to the Bahamas Securities Commission was valued at $296 million
• This number falls short of the billions of dollar claim made by the commission
• FTX Debtors is working towards having these assets transferred back

FTX has made an official announcement on the total amount of money sent to the Bahamas Securities Commission. Interestingly, there seems to be a difference in claims on the amount transferred. While the Bahamas regulatory authority claims over billions were sent in crypto, FTX Debtors states that the amount was in millions, at the time of transfer.

FTX assets with missing numbers

In a press release, FTX Debtors claimed that the amount transferred by the platform to the commission was around $296 million at the time of transfer. It also claimed that the cryptocurrencies transferred to the authorities were 195 million FTT, 1938 Ether, and other “miscellaneous coins that do not have substantial value”. The press release further read

“The Bahamas Commission has acknowledged that it orchestrated these transfers, and retains the digital assets in a single digital wallet at Fireblocks, consistent with what is shown on the blockchain.”

Notably, the value of these cryptocurrencies is staggeringly low compared to the claims put forth by the Bahamas Securities Commission. The commission claims that Sam Bankman-Fried and Gary Wang transferred crypto worth nearly $3.5 billion, according to market value at the time of transfer. However, the commission did not disclose the cryptocurrencies it has in its possession.

On the massive gap in crypto valuation, FTX Debtors said,

“The press release did not identify the type of cryptocurrency seized or the valuation methodology, and the Bahamas Commission has not provided the FTX Debtors any further information to resolve the valuation disparity (…) provide the public with accurate information concerning the cryptocurrency seized”

FTX assets transferred a day after the bankruptcy filing

The commission had SBF and Wang send the crypto for the sake of “safekeeping”. The move was made after it was reported that the exchange was facing cyberattacks, and it was in line with the Supreme Court’s ruling. The commission said,

“The digital assets transferred on 12 November 2022 to digital wallets under the exclusive control the Commission are being held by the Commission on a temporary basis, until such time as The Bahamas Supreme Court directs the Commission to deliver them to the customers and creditors who own them (…)”

Meanwhile, FTX Debtors stated that neither the commission nor the executives had the authority to take the cryptocurrencies that were in possession of the exchange. The statement comes in as the assets were transferred a day after the exchange filed for bankruptcy. It further claimed that the debtors will pursue the return of the funds as per the Chapter 11 bankruptcy filing.