Bankrupt cryptocurrency exchange FTX disputed claims by the Securities Commission of the Bahamas (SCB) that it was holding $3.5 billion of its assets, insisting that the seized assets were worth just $296 million,

The SCB seized FTX’s digital assets when it began liquidation proceedings against FTX Digital Markets Ltd., the company's Bahamas-based unit, in November.

The FTX is urging SCB to clear up any confusion about the value of its assets that the latter holds.

The FTX is also seeking the return of the assets because FTX DM is only a "local service company" which does not own the FTX.com exchange or any of the cryptocurrency seized.

SCB said it was holding over $3.5 billion in seized cryptocurrency for future repayment to FTX's customers and other creditors.

FTX said that most of the seized cryptocurrency was in the form of proprietary FTT tokens that would have plunged in value to $167 million as of Dec. 20. It added that SCB will struggle in selling such a large stake even at that lowered price.