Bahamian securities regulator slams new FTX CEO over ‘misstatements’

The Securities Fee of Bahamas has slammed the present CEO of bankrupt crypto alternate FTX John J. Ray III for his statements concerning the continuing investigation into FTX. 

In a press launch despatched to Cointelegraph, the Bahaman regulator did not straight level towards the precise statements of the CEO, however addressed current stories that recommend the Bahamas’ authorities requested former CEO Sam Bankman-Fried to create a brand new multi-million token and hand over the management to them.

The stated report additionally alleged Bahamas officers tried to assist Bankman-Fried regain entry to key pc programs of the FTX. In keeping with United States attorneys, Bahamas officers have been “liable for directing unauthorized entry” to FTX programs with the intention to take over management of digital property beneath the supervision of a U.S. courtroom.

The securities regulator stated that they have been the primary regulators to take strict motion in opposition to the collapsed alternate and its CEO. Addressing the rumors over digital property custody, the press launch famous that the authorities secured the switch of doubtless “commingled digital property” of FTX alternate on orders issued by the supreme courtroom of the Bahamas. The press launch learn:

“The Fee holds these property as trustee solely (beneath Bahamian Legislation), and they are going to be finally distributed, to collectors and purchasers of FTX, wherever they could be positioned, in accordance with the courtroom’s path.”

The Bahamas regulator additionally slammed Ray for utilizing a “redacted e mail correspondence” between the officers and Bankman-Fried. The discharge famous that these redactions have been designed to create a misunderstanding of communications and Ray was nicely conscious of the entire situation.

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The securities regulator requested Ray and his representatives to not “hinder the investigation,” and accused the CEO of not clearing his concern with the fee first earlier than airing them publically.

Former FTX CEO Bankman-Fried was arrested late on Dec. 12 by the Bahamas authorities on the request of the U.S. authorities. A day later, U.S. Securities and Trade Fee together with the Commodity Futures Buying and selling Fee charged Bankman Fried with defrauding U.S. traders.