FTX moved Bahamian assets worth $7.7 billion to US units ahead of bankruptcy filing

The provisional managers of the bankrupt bitcoin exchange FTX stated that shortly before filing for bankruptcy, the company transferred assets totaling $7.7 billion from Bahamian to US units. This was disclosed during a court hearing in Delaware, CoinDesk.

According to them, $5.6 billion was moved from the Bahamian unit FTX Digital’s custodial accounts to FTX US. A further $2.1 billion was transferred to Alameda Research.

“In addition, we have other material assets valued at around $3 million, including office furniture, equipment, and a fleet of vehicles that belonged to employees in the Bahamas,” said Christopher Shor, the liquidator’s attorney.

In early January the new leadership of FTX agreed to cooperate with the court-appointed liquidators in the Bahamas to resolve disputed issues. However, they described the ownership of the assets as an open question as to whether they belonged to the Bahamian or the U.S. unit.

At the same hearing, the judge rejected a request to appoint an independent expert to examine the exchange’s financials, which, as previously stated by its representatives, could cost about $100 million.

As previously reported, the liquidators of Bahamas-based FTX Digital Markets said that the company had effectively merged corporate and client funds, and kept a ‘limited’ accounting.

Additionally, the liquidators uncovered intra-group debts totaling $276.2 million. This includes a debt of $256.3 million owed to FTX Property “for potential financing of the acquisition commercial and residential real estate in the Bahamas .”