Bahamian securities regulator slams new FTX CEO over 'misstatements'

Published at: Dec. 14, 2022

The Securities Commission of Bahamas has slammed the current CEO of bankrupt crypto exchange FTX John J. Ray III for his statements regarding the ongoing investigation into FTX. 

In a press release sent to Cointelegraph, the Bahaman regulator didn't directly point toward the exact statements of the CEO, but addressed recent reports that suggest the Bahamas' government asked former CEO Sam Bankman-Fried to create a new multi-million token and hand over the control to them.

The said report also alleged Bahamas officials tried to help Bankman-Fried regain access to key computer systems of the FTX. According to United States lawyers, Bahamas officials were “responsible for directing unauthorized access” to FTX systems in order to take over control of digital assets under the supervision of a U.S. court.

The securities regulator said that they were the first regulators to take strict action against the collapsed exchange and its CEO. Addressing the rumors over digital assets custody, the press release noted that the authorities secured the transfer of potentially “commingled digital assets” of FTX exchange on orders issued by the supreme court of the Bahamas. The press release 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.”

The Bahamas regulator also slammed Ray for using a “redacted email correspondence” between the officials and Bankman-Fried. The release noted that those redactions were designed to create a false impression of communications and Ray was well aware of the complete scenario.

Related: Breaking: SBF denied bail by Bahamas Magistrate Court judge

The securities regulator requested Ray and his representatives to not “obstruct the investigation,” and accused the CEO of not clearing his concern with the commission first before airing them publically.

Former FTX CEO Bankman-Fried was arrested late on Dec. 12 by the Bahamas authorities at the request of the U.S. government. A day later, U.S. Securities and Exchange Commission along with the Commodity Futures Trading Commission charged Bankman Fried with defrauding U.S. investors.

Tags
Regulation
Sec
Cryptocurrencies
Sam Bankman-Fried
Cftc
Ftx
Related Posts
US Senate banking chair floats possibility of banning crypto
United States Banking Committee chairman Sherrod Brown has suggested that the Securities Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) should perhaps consider a ban on cryptocurrencies. Brown’s comments were made in a Dec. 18 appearance on NBC’s “Meet the Press” although the Senator quickly added that a ban would be difficult to enforce. “We want them to do what they need to do at the same time, maybe banning it, although banning it is very difficult because it would go offshore, and who knows how that would work.” Earlier, in response to a host's question about Senator …
Blockchain / Dec. 19, 2022
Will SBF face consequences for mismanaging FTX? Don’t count on it
Will former FTX CEO Sam Bankman-Fried be held accountable for his mismanagement of investor funds? After most of the entities tied to his cryptocurrency exchange became insolvent last week, blockchain analysts concluded the insolvencies came as a partial result of the exchange’s trading house, Alameda Research, burning through nearly $10 billion in cash that technically belonged to FTX customers. To date, the company has declined to elaborate on the contractual details that made the arrangement possible — or legal. In the aftermath of FTX’s collapse, skeptics have questioned whether the elite — in Washington or elsewhere — will be motivated …
Regulation / Nov. 15, 2022
SEC charges FTX CEO SBF for defrauding investors a day after his arrest
The United States Securities and Exchange Commission (SEC) has filed charges against Sam Bankman-Fried, the former CEO of now-bankrupt crypto exchange FTX. The SEC has charged Bankman-Fried with violating the anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC’s complaint seeks injunctions against future securities law violation that prohibits Bankman-Fried from participating in the issuance, purchase, offer, or sale of any securities except for his own personal account. Related: SBF planned to blame everyone but himself, shows leaked Congress testimony SEC charged Bankman-Fried for orchestrating a scheme to defraud equity investors in …
Regulation / Dec. 13, 2022
Law Decoded, Jan. 9-16: Gemini, Bithumb, Nexo are fresh targets for regulation and prosecution
The United States Securities and Exchange Commission charged cryptocurrency lending firm Genesis Global Capital and crypto exchange Gemini with selling unregistered securities through Gemini’s “Earn” program. The Commodity Futures Trading Commission started the process of getting a default judgment in its case against Ooki DAO after the decentralized autonomous organization missed the deadline to respond to the lawsuit. It also filed suit against digital artist Avraham Eisenberg and charged him with two counts of market manipulation in connection with an exploit of the decentralized finance platform, Mango Markets. In South Korea, tax agents raided the Seoul headquarters of cryptocurrency exchange …
Regulation / Jan. 16, 2023
FTX poked the bear and the bear is pissed — O'Leary on the crypto crackdown
Shark Tank investor and venture capitalist Kevin O’Leary has urged crypto exchanges to “get on board with regulation” if they want to “stay out of the way” of Gary Gensler and the United States Securities Exchange Commission (SEC). In a Feb. 20 interview with TraderTV Live, O’Leary said that U.S. lawmakers are “fatigued” over crypto collapses and that they’re only going to get more ruthless if companies continue to not comply: “You got to get on board with regulation, you got to stay out of the way of Gensler at the SEC and other regulators. Those hombres [men] in Washington …
Adoption / Feb. 21, 2023