- A December 30 report says that $300 million of seized funds were moved without approval.
- Debtors claim that the $296 million transfer was by order of the Bahamas Securities Commission.
- These assets value today at just $167 million.
Former crypto white knight and ex-CEO of FTX seems to have bitten more than he could chew. He is already facing legal actions in the US accounting for a battery of financial crimes, and now the Bahamas, where FTX HQ was located, had seized $300 million earlier. Still, on December 30, 2022, they were transferred without approval.
The debtors are claiming that the Bahamas Securities Commission (SCB) had instructed Sam and Gary Wang to send $296 million of digital assets to a Fire Blocks cryptocurrency wallet controlled by the regulator.
The allegedly transferred assets include 195 million FTT, 1,938 ETH and other currencies without significant value. Ironically these assets were valued at $296 million in November 2022, but they now value at just $167 million. FTX noted that SCB is now holding the referred assets, and it might not be feasible for the regulator to sell this huge batch of FTTs at their current spot price.
FTX and its debtors are accusing based on available evidence and the assertion that SCB had acknowledged the orchestration of said funds. However, yesterday’s announcement didn’t mention FTX’s claims.
FTX stands firm on the fact that SBF, Gary Wang and the Bahamas Securities Commission had no right whatsoever to take those assets under control. They are now trying to regain those and will deliver them to creditors following the bankruptcy proceedings.
SCB had admitted to holding $3.5 billion worth of assets, and the $269 million may or may not be part of that, as they were transferred on November 12, 2022, by the direction of the Bahamian Supreme Court and possibly could have emerged from FTX Digital Market.
FTX is now in talks with SCB over the matter and wants them to “clear up any confusion” by describing the ownership and value of these assets.
FTX also claimed that FTX Digital Markets is the only FTX entity regulated by the Bahamas Security Commission. Also, the seized assets were not originally owned by FTX Digital markets.
Initially, Sam Bankman-Fried had denied moving any funds, especially from addresses tied to Alameda Research today. Those funds were removed this week and merely valued at $1.7 million.
Moreover, these funds are unrelated to hundreds of millions of dollars allegedly transferred to the Bahamas Securities Commission in November 2022.
Will it affect the ongoing case?
As it is one of a kind case, a black swan event. The recent revelation could affect the hearing’s outcome, but their extent seems minimal. Many important and groundbreaking facts can solve the case and help the whole crypto industry with increased heartbeats as it pounds with every rattle.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/12/31/sbf-told-to-surrender-300-million-by-the-bahamas-security-commission/