Bahamas Regulator Disputes FTX’s Claim About Value of Seized Cryptocurrencies

The Securities Commission of the Bahamas has disputed FTX’s assertion that the worth of the cryptocurrencies it seized from the bankrupt crypto speech was not $3.5 billion. The caller FTX chief’s “continued deficiency of diligence erstwhile making nationalist statements concerning the Commission is disappointing,” the Bahamian regulator stressed.

Bahamas Regulator and FTX Disagree connected the Value of Seized Crypto Assets

The Securities Commission of the Bahamas issued a connection Monday to “correct worldly misstatements” made by the caller FTX CEO, John J. Ray III, regarding the worth of the cryptocurrencies it seized from FTX. Ray represents U.S. FTX debtors successful the crypto exchange’s bankruptcy filing (Chapter 11 Debtors).

The Bahamian regulator explained that connected Dec. 30, 2022, FTX and Ray “publicly challenged the Commission’s calculations” of the worth of the crypto assets transferred to its integer wallets connected Nov. 12. According to the Commission, over $3.5 billion successful cryptocurrencies were seized from FTX. However, Ray argued that the worth of the integer assets transferred connected that day was really astir $296 million.

In its Monday statement, the Commission said that the U.S. FTX debtors’ calculations “were based connected incomplete information,” asserting:

The Chapter 11 Debtors chose not to utilize their quality to petition accusation from the associated provisional liquidators pursuant to a tribunal bid of the Supreme Court of the Bahamas… The U.S. debtors’ continued deficiency of diligence erstwhile making nationalist statements concerning the Commission is disappointing.

The Bahamas regulator alleged that the caller FTX CEO made mendacious statements regarding the Commission successful a tribunal filing connected Dec. 12, 2022, “without evidence,” and again nether oath connected Dec. 13 earlier the U.S. House Committee connected Financial Services. The regulator specifically mentioned the accusation that it asked erstwhile FTX CEO Sam Bankman-Fried (SBF) to mint “a important magnitude of caller tokens” during the crypto exchange’s bankruptcy process.

The Commission added:

Mr. Ray has not erstwhile reached retired to the Commission to sermon immoderate of his concerns earlier airing them publicly.

Ray was appointed the caller FTX CEO and its main restructuring serviceman erstwhile Bankman-Fried stepped down arsenic the crypto speech filed for bankruptcy. Ray, who besides led Enron during the vigor giant’s bankruptcy, said astir FTX successful November: “Never successful my vocation person I seen specified a implicit nonaccomplishment of firm controls and specified a implicit lack of trustworthy fiscal accusation arsenic occurred here.”

The Securities Commission of the Bahamas further revealed that the caller FTX CEO has not responded to its Dec. 7 missive successful which the Bahamian regulator offered “cooperation with Chapter 11 Debtors.”

Do you judge the Securities Commission of the Bahamas oregon the caller FTX absorption regarding the worth of seized cryptocurrencies? Let america cognize successful the comments conception below.

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