Bahamas regulator criticizes new FTX CEO
2022.12.14 04:00
Bahamas regulator criticizes new FTX CEO
Budrigannews.com – For his statements regarding the ongoing investigation into FTX, the current CEO of the bankrupt crypto exchange FTX, John J. Ray III, has been slammed by the Securities Commission of the Bahamas.
In a public statement shipped off Cointelegraph, the Bahaman controller didn’t straightforwardly highlight the specific assertions of the President, yet tended to ongoing reports that propose the Bahamas’ administration asked previous Chief Sam Bankman-Broiled to make a new multi-million token and hand over the control to them.
The aforementioned report also said that officials from the Bahamas tried to help Bankman-Fried get back into the FTX’s important computer systems. Lawyers for the United States claim that officials in the Bahamas were “responsible for directing unauthorized access” to FTX systems in order to seize control of digital assets under a U.S. court’s supervision.
More Cryptocurrency market Developing despite FTX
According to the securities regulator, they were the first to take severe action against the CEO of the collapsed exchange. The press release stated that the authorities secured the transfer of potentially “commingled digital assets” of the FTX exchange on orders issued by the supreme court of the Bahamas, addressing the rumors regarding digital asset custody. The official statement read:
“The Commission holds those assets as trustee only (under Bahamian Law), and they will be ultimately distributed, to creditors and clients of FTX, wherever they may be located, in accordance with the court’s direction.”
Ray’s use of a “redacted email correspondence” between the officials and Bankman-Fried was also criticized by the Bahamas regulator. According to the release, Ray was well aware of the entire scenario, and the redactions were made with the intention of creating a false impression of communications.
The securities regulator asked Ray and his representatives not to “obstruct the investigation,” and the CEO was accused of not first discussing his concerns with the commission before making them public.
At the request of the United States government, the Bahamas authorities arrested the former CEO of FTX, Bankman-Fried, late on December 12. The Securities and Exchange Commission of the United States and the Commodity Futures Trading Commission brought charges against Bankman Fried for defrauding American investors the following day.
