Bahamas securities commission backfires at FTX’s management

The Bahamas regulators recently had a feud against the new FTX management team. SCB (The Securities Commission of The Bahamas) shared an official statement on January 2. 

According to the statement, the SCB is trying to rectify the material misstatements by John Ray III. Recently appointed as the FTX CEO, John replaced Sam Bankman-Fried, the founder who resigned back in November.

Fried was arrested on December 12 in The Bahamas, facing charges from the SEC. According to the US Securities and Exchange Commission, Fried orchestrated schemes to fool equity investors. 

In the statement, the Securities Commission of The Bahamas umbrages because of three points:

  • John’s statements challenging the calculation of the digital assets’ value transferred into the custody
  • John’s allegations regarding the regulator instructing FTX to mint 300 million dollars in new FTT tokens
  • Every statement suggesting that FTX assets within the SCB’s hold were stolen

The SCB continued stating that every challenge to the calculations has been based on incomplete information. It claims that the instructed FTT minting was unfounded, and every allegation of theft was made without offering any basis for such claims.

Seeing how the US Debtors are continuing to show a lack of diligence while making public statements regarding the Commission is disappointing. It also shows their cavalier attitude regarding The Bahamas and the truth. This is apparent in the current officers’ attitude after the appointment by Bankman-Fried.

Such statements have been constant ever since the rage regarding FTX’s bankruptcy filing started. In the earlier filing, the new management at FTX had claimed to have credible evidence against the government being responsible for allowing unauthorized access to the Debtors’ system. 

On December 20, the US Securities and Exchange Commission revealed holding over 3.5 billion dollars in FTX customer assets since November 12. Shortly after that, FTX trading stated that they would get the return of the crypto to Chapter 11. However, there have been warnings on the FTX Exchange platform regarding the liquidity crisis and the supposed collapse. 

FTX and FTX.US filed for bankruptcy regarding the misuse of customer funds. Therefore the users must stay alert or restrain themselves from investing in the FTX at this present time.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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