The Securities Fee of the Bahamas has disputed FTX’s declare that the worth of the cryptocurrencies it seized from the bankrupt crypto trade was not $3.5 billion. The brand new FTX chief’s “continued lack of diligence when making public statements in regards to the Fee is disappointing,” the Bahamian regulator pressured.
Bahamas Regulator and FTX Disagree on the Worth of Seized Crypto Property
The Securities Fee of the Bahamas issued a press release Monday to “right materials misstatements” made by the brand new FTX CEO, John J. Ray III, relating to the worth of the cryptocurrencies it seized from FTX. Ray represents U.S. FTX debtors within the crypto trade’s chapter submitting (Chapter 11 Debtors).
The Bahamian regulator defined that on Dec. 30, 2022, FTX and Ray “publicly challenged the Fee’s calculations” of the worth of the crypto belongings transferred to its digital wallets on Nov. 12. In keeping with the Fee, over $3.5 billion in cryptocurrencies had been seized from FTX. Nevertheless, Ray argued that the worth of the digital belongings transferred on that date was truly about $296 million.
In its Monday assertion, the Fee stated that the U.S. FTX debtors’ calculations “had been primarily based on incomplete data,” asserting:
The Chapter 11 Debtors selected to not make the most of their skill to request data from the joint provisional liquidators pursuant to a court docket order of the Supreme Court docket of the Bahamas… The U.S. debtors’ continued lack of diligence when making public statements in regards to the Fee is disappointing.
The Bahamas regulator alleged that the brand new FTX CEO made false statements relating to the Fee in a court docket submitting on Dec. 12, 2022, “with out proof,” and once more below oath on Dec. 13 earlier than the U.S. Home Committee on Monetary Providers. The regulator particularly talked about the accusation that it requested former FTX CEO Sam Bankman-Fried (SBF) to mint “a considerable quantity of latest tokens” through the crypto trade’s chapter course of.
The Fee added:
Mr. Ray has not as soon as reached out to the Fee to debate any of his considerations earlier than airing them publicly.
Ray was appointed the brand new FTX CEO and its chief restructuring officer when Bankman-Fried stepped down because the crypto trade filed for chapter. Ray, who additionally led Enron through the vitality big’s chapter, stated about FTX in November: “By no means in my profession have I seen such an entire failure of company controls and such an entire absence of reliable monetary data as occurred right here.”
The Securities Fee of the Bahamas additional revealed that the brand new FTX CEO has not responded to its Dec. 7 letter during which the Bahamian regulator supplied “cooperation with Chapter 11 Debtors.”
Do you imagine the Securities Fee of the Bahamas or the brand new FTX administration relating to the worth of seized cryptocurrencies? Tell us within the feedback part under.
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