Bahamas and FTX U.S. $3 Billion Apart on Value of Recovered Assets With Friday’s Hearing Looming

Joshua Ramos
Source: CoinDesk

As the crucial Friday hearing fast approaches, Coindesk reported the Bahamas and FTX U.S. are $3 billion apart on recovered assets from the bankruptcy estate. Bahamian Authorities have claimed $3.5 billion is recovered, whereas the U.S. has claimed that number to only be $296 million.

The two sides have been embroiled in an escalating conflict all week, with the hearing set to bring them to a head. The bankruptcy of FTX has certainly left a plethora of investors and creditors in limbo. Yet, things have not gotten better to this point, as the vast difference in recovery estimates force a wait until an agreement by bankruptcy managers.

Bahamas and FTX U.S. Continue Fight

The collapse of FTX and the subsequent arrest of former CEO Sam Bankman-Fried is perhaps the biggest scandal in crypto’s history. The events have uncovered what has been referred to as one of the biggest financial frauds ever committed. Moreover, as the platform hopes to turn the page, things have proven to be as complicated as ever.

Within the bankruptcy proceedings, a conflict has developed between both the Bahamas and FTX U.S. Subsequently, as a crucial Friday hearing is fast approaching, there is no agreement between the two sides on one of the most critical aspects of the proceedings.

Coindesk reported that the Bahamas and FTX U.S. have a $3 billion difference between recovered assets from the bankruptcy estate. Bahamian authorities claim to have $3.5 billion recovered, whereas the U.S. arm says that number is only $296 million.

Source: ABC News

The discrepancy is abnormally large, and with both sides implicating the other in potential foul play, there is not an expected resolution until Friday. Additionally, Coindesk notes that the bankruptcy hearings were presented in the arraignment hearing that saw Sam Bankman-Fried plead not guilty.

Ultimately, Coindesk correspondent Nikhilesh Deshpande states that creditors are in the worst position from the standoff. The difference in recovered asset estimation is so large, it hinders any move forward. Conclusively, Despande remarked, “the fact that they can’t even agree on the value of these assets is troubling…”