New revelations about FTX client funds held in Bahamas

The Bahamas Securities Commission has held over $3.5 billion in cryptocurrency in a digital wallet since November 12.

We now know a little more about FTX customers’ funds. The Bahamas Security Commission has more than $3.5 billion in cryptocurrency from FTX customers in a digital wallet, according to a new court document. The move to secure client funds was made after $371 million worth of crypto value disappeared hours after giant FTX collapsed on November 11.

As of November 12, FTX customers’ funds have therefore been temporarily withheld by the Bahamas Commission “until the Supreme Court of the Bahamas orders the Commission to deliver them,” the authority specifies. The FTX case is currently handled by two bodies which are in competition for the processing of this case. Both the regulator in the Bahamas, where the American giant had established its headquarters, but also of the United States, where FTX has placed itself under Chapter 11 of the American bankruptcy law.

1 million customers

These new revelations don’t mean customers are out of the woods. In fact, FTX has more than a million customers to repay since the bankruptcy. In addition, the former giant owes $3.1 billion to its top 50 creditors, who will have priority in the repayment process. Investment bank Jefferie estimates that FTX’s creditors can recover between 20% and 40% of their money, as FTX’s debt is between 10 and 13 billion, compared to assets of 2 to 4 billion.

As a reminder, extradited last week to the United States, Sam Bankman-Friend (SBF) was released on $250 million bail and is under house arrest at his parents’ home in California. If SBF should be found guilty of 8 relationships created under US law, he could be sentenced to 115 years in prison.

The former head of FTX will be heard in the US judiciary next Tuesday.

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