Bahamian regulator denies cooperation with FTX
2023.01.03 02:25
Bahamian regulator denies cooperation with FTX
Budrigannews.com – The claims made by FTX debtors have been denied by the Securities Commission of The Bahamas (SCB), which is concerned that the investigation has been ‘impeded.’
In press and court filings, the representative of the US-based FTX debtors, John J. Ray III, made material misstatements, according to a Jan. 3 statement from the Securities Commission of The Bahamas (SCB).
According to the document, the Chapter 11 Debtors had “publicly challenged” the Commission’s calculations regarding the November 2022 transfer of digital assets to digital wallets under the Commission’s control.
It contended that these explanations depended on “inadequate” data and the debt holders didn’t do an expected level of effort by mentioning data from the Joint Temporary Vendors.
According to the statement, FTX CEO John J. Ray III made public statements in a court filing before the U.S. House of Financial Services Committee claiming that the Commission instructed FTX to “mint a substantial amount of new tokens” under “oath.”
The Chapter 11 Debtors have also claimed that the digital assets held in the trust of FTX customers and creditors by the Commission were “stolen,” but they haven’t provided any evidence to back up these claims.
The Chapter 11 Debtors’ refusal to grant Court Supervised Joint Provisional Liquidators access to FTX’s AWS System posed a threat to the Commission’s investigation as well.
According to the announcement, “The SCB is hoping that the Chapter 11 Debtors will proceed with matters in good faith and in the best interest of FTX’s customers and creditors.”
The Bahamian protections controller’s declaration comes after information from court filings in December 2022, where FTX legal counselors guaranteed the Bahamas government purportedly mentioned that the previous President of FTX, Sam Bankman-Seared (SBF), issue another digital money constrained by neighborhood authorities.
According to the initial reports, the Bahamas regulator ordered SBF to create new digital assets worth hundreds of millions of dollars.
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