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Bahamian securities regulator slams new FTX CEO over ‘misstatements’

Bahamian securities regulator slams new FTX CEO over ‘misstatements’

The Securities Commission of Bahamas has slammed FTX’s new CEO for his statements regarding the ongoing investigation into the bankrupt crypto exchange. 

In a press release sent to Cointelegraph, the Bahaman regulator didn’t directly point to the exact statement of John J. Ray III it has issues with, but addressed recent reports that the Bahamas’ government had asked former CEO Sam Bankman-Fried to create a new multi-million token and hand over control to them.

The report also alleged Bahamas officials tried to help Bankman-Fried regain access to key computer systems of 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 “redacted email correspondence” between officials and Bankman-Fried. The release said that those redactions were designed to create a false impression of communications and that 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 concerns with the commission first before airing them publically.

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