Summary:
- The Securities Commission of The Bahamas addressed “material misstatements” made by FTX CEO John Ray III after the crypto exchange collapsed in November.
- The Commission accused Ray of making unfounded claims based on incomplete information.
- Friction between both parties crossed into a new year amid ongoing bankruptcy proceedings and investigations into FTX’s billion-dollar crash.
Tensions between the FTX’s bankruptcy administration and the Securities Commission of The Bahamas escalated on Tuesday as the watchdog fired back over claims made by CEO John Ray III
On January 3, the SCB published an announcement in a bid to dispel misinformation that emerged from the new FTX boss. Ray was hired to lead the fallen crypto exchange through bankruptcy shortly after Sam Bankman-Fried unwillingly filed for Chapter 11 protection.
According to the court documents, Ray’s team claimed that the Bahamas watchdog instructed Bankman-Fried’s exchange to mint roughly $300 million in fresh FTT tokens, the native token of the crippled platform. The SCB countered this claim, calling the allegations “unfounded” and based on incomplete reporting.&
The US Debtors’ continued lack of diligence when making public statements concerning the Commission is disappointing, and reflects a cavalier attitude towards the truth and towards The Bahamas that has been displayed by the current officers of the Chapter 11 Debtors from the date of their appointment by Sam Bankman-Fried.
Back in later 2022, the SCB also addressed claims that Bahamas authorities gave FTX permission to open local withdrawals.&
FTX Embroiled In Tussle With Bahamas Authorities
Indeed, friction between the two entities sparked in November after FTX accused Bahamas regulators of stealing cryptocurrencies from the crypto exchange. The SCB countered that Ray publicly disclosed the claims without liaising with Bahamas regulators or responding to communication attempts.&
Mr. Ray has not once reached out to the Commission to discuss any of his concerns before airing them publicly, The Commission has still not received a response to its 7 December 2022 letter to Mr. Ray offering cooperation with Chapter 11 Debtors.
The SCB reportedly secured around $3.5 billion in FTX customer crypto after a hacker stole roughly $400 million in digital assets from the platform. Ray’s team asked the court for control over the digital assets as bankruptcy proceedings seek to settle creditors and debtors alike.
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