WILMINGTON, Del., December 30, 2022 /PRNewswire/ — FTX Trading Ltd. (dba FTX.com), and its related debtors. “FTX Debtors”, have released additional data regarding the Cryptocurrency seizure by the Securities and Exchange Commission Of The bahamas (the “bahamas Commission”).
On November 12, 2022 the FTX Debtors noticed that digital assets, including around 195 million FTT, 1,938 ETH, and other coins, had been relocated to them without their authorization. Blockchain records demonstrate that Cryptocurrency is now located in a digital wallet owned by Fireblocks.
Proofs provided by the FTX Debtors demonstrate that on November 12, 2022 the bahamas Commission asked Mr. Bankman-Fried and Mr. Wang to transfer digital assets from one computer to the Fireblocks wallet. The bahamas Commission has accepted responsibility for these transactions and is preserving the digital assets in one digital pocket, Fireblocks, in accordance with the blockchain data.
At the time of the transfer, the market price of the Cryptocurrency in Fireblocks’ wallet was roughly $296 million, according to etherscan.io. It is possible to sell the entire amount of FTT at market rates. The estimated value of the Cryptocurrency at spot prices as of 2:00 PM EST on December 30, 2022 is approximately $167 million under the same assumptions. There is no assurance that FTT in such large quantities can be sold at spot price or at any other time.
The bahamas Commission issued a press release today indicating that the seized Cryptocurrency was worth more than $3.5 Billion at the time of the transfer. The press release did not mention the type of Cryptocurrency or clarify the valuation method and the FTX Debtors encourage the bahamas Commission to provide accurate information to the public about the Cryptocurrency and the value of what was seized.
In addition, the FTX Debtors have informed the bahamas Commission that none of the abovementioned parties have the authority to take the Cryptocurrency from the FTX Debtors and that the FTX Debtors will pursue the return of the seized property. The FTX Debtors demand that their Cryptocurrency be recovered immediately and returned as Chapter 11 assets to the creditor’s benefit. The bahamas Commission has only regulated FTX Digital Markets Ltd. (“FTX DM”), a local utility in The bahamas. FTX DM is neither the operator nor the owner of the FTX.com Exchange, nor the custodian of the Cryptocurrency.
More information about the FTX Debtors’ Chapter 11 cases is available at https://cases.ra.kroll.com/FTX/.
advisors
The FTX Debtors are represented by Sullivan & Cromwell LLP as legal counsel, Alvarez & Marsal North AmericaLLC as financial advisor, and Perella Weinberg Partners LP as investment banker.
SOURCE FX
