According to Reuters, On Monday, the Securities Commission of the Bahamas (SCB) rejected FTX's claim that the regulator holds the digital assets of its Bahamas unit because debtors didn't give the regulator all the information.
In a statement last month, the SCB said it had seized FTX Digital Markets' cryptocurrency holdings to repay future customers as well as other creditors.
FTX disputed SCB's calculations, saying its digital assets seized in November were worth just $296 million and not $3.5 billion.
“Such public assertions by the Chapter 11 debtors were based on incomplete information,” the regulator said in a statement on Monday.
Following its bankruptcy filing on Nov. 11, FTX did not respond immediately to a request for comment.
To help liquidate FTX Digital Markets, Bahamas officials have sought access to FTX's records, but the company's U.S. bankruptcy team has refused.
FTX founder and former chief executive Sam Bankman-Fried was arrested on fraud charges and will be arraigned on Tuesday before Manhattan federal judge Lewis Kaplan.
John Ray, FTX's newly appointed CEO, has said the exchange lost $8 billion in customer funds.
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