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Regulators in the Bahamas back their estimate on $3.5 billion in seized FTX crypto assets, saying the exchange's counter-claim of $296 million is due to 'incomplete FTX’s US-based bankruptcy team agreed to coordinate with liquidators who are winding down the crypto exchange’s operations in the Bahamas, resolving a dispute that Just seven months later, FTX’s spectacular collapse has sent shockwaves through an industry that promised to revolutionise finance, and shattered the credibility of the The government of the Bahamas seized $3.5 billion of cryptocurrency assets belonging to FTX, the defunct exchange formerly led by Sam Bankman-Fried, after the The Bahamas securities regulator and the team overseeing bankrupt cryptocurrency platform FTX’s Chapter 11 proceedings are fighting over a US$3.5 billion FTX, the former cryptocurrency exchange, recovered more than $5 billion in liquid assets, including cash, a lawyer for the company told a bankruptcy judge in Delaware FTX on Friday disputed claims by the Securities Commission of the Bahamas (SCB) that the regulator was holding $3.5 billion of the bankrupt cryptocurrency exchange's

Bahamas and FTX: A $3 Billion Valuation Gap on Recovered Assets as Friday's Hearing Approaches

A significant discrepancy has emerged between the Bahamas and FTX regarding the value of recovered assets, with a difference of nearly $3 billion. As a crucial hearing looms this Friday, the debate centers on the actual worth of cryptocurrency seized by authorities in the Bahamas.

Regulators in the Bahamas stand by their estimate of $3.5 billion in seized FTX crypto assets. They argue that FTX's counter-claim of only $296 million is the result of 'incomplete' data. This stark contrast in valuation highlights the complexity of untangling the financial web left behind by the collapsed exchange.

The dispute has become a focal point in the ongoing bankruptcy proceedings. FTX, the former cryptocurrency exchange, recovered more than $5 billion in liquid assets, including cash, a lawyer for the company told a bankruptcy judge in Delaware, but the Bahamian-held portion is a key point of contention.

The background to this conflict involves the Bahamian government's actions following FTX's implosion. The government of the Bahamas seized $3.5 billion of cryptocurrency assets belonging to FTX, the defunct exchange formerly led by Sam Bankman-Fried, after its collapse. The Bahamas securities regulator and the team overseeing bankrupt cryptocurrency platform FTX’s Chapter 11 proceedings are fighting over a US$3.5 billion valuation.

FTX on Friday disputed claims by the Securities Commission of the Bahamas (SCB) that the regulator was holding $3.5 billion of the bankrupt cryptocurrency exchange's assets. This disagreement is further complicating the process of reimbursing creditors and understanding the full extent of the losses incurred.

This controversy underscores the chaotic aftermath of FTX's downfall. Just seven months later, FTX’s spectacular collapse has sent shockwaves through an industry that promised to revolutionise finance, and shattered the credibility of the cryptocurrency market for many investors. The valuation dispute further muddies the waters and raises questions about the accuracy and transparency of FTX's asset reporting.

Despite the ongoing dispute, a degree of cooperation has been established. FTX’s US-based bankruptcy team agreed to coordinate with liquidators who are winding down the crypto exchange’s operations in the Bahamas, resolving a dispute that previously hampered the recovery process. However, the substantial valuation gap remains a significant hurdle.

The outcome of Friday's hearing could have significant implications for creditors seeking compensation and for the overall perception of accountability in the wake of FTX's collapse. The world is watching to see how this $3 billion discrepancy will be resolved.

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