Mr. John J. Ray III, the new CEO of FTX debtors, made false statements in media and court documents, which were deemed material misstatements by the Securities Commission of The Bahamas(SCB).
The Chapter 11 Debtors publicly disputed the accuracy of the commission’s calculations of the digital assets transferred to digital wallets controlled by the commission in November 2022.
The Chapter 11 Debtors’ statements to the public were made with insufficient facts, prompting the commission to forego its right granted by the Bahamas Court’s order to receive such data from the Joint Provisional Liquidators.
Sam Bankman-Fried appointed the current officers of the Chapter 11 Debtors with an apathetic outlook towards accuracy and respect for The Bahamas. Unfortunately, this insouciance has been perpetuated in their public remarks about the commission, which is highly dissatisfactory.
FTX New CEO’s Misstatements
In an official record dated December 12th, Mr. Ray declared to the public that the commission mandated a sizable quantity of freshly minted tokens. These accusations were again brought forward under oath before the U.S. House Financial Services Committee on December 13th, however, without any valid proof.
The international press widely reported statements suggesting that Bahamian officials ordered FTX employees to create $300 million worth of new FIT tokens.
The commission countered such untruthful claims with a court filing and an official statement issued on December 29th detailing how it came to possess digital assets connected to FTX Digital Markets and its operators.
Additionally, the Chapter 11 Debtors alleged the theft of digital assets held by the commission on behalf of FTXDM’s customers and creditors without supplying any verifiable evidence to back up their claims, particularly with respect to ownership. “Per U.S. Debtors’ own court filings, they appear to recognize that there are disputed claims to those assets.”
According to the document:
Mr. Ray has not once reached out to the commission to discuss any of his concerns before airing them publicly. The commission has still not received a response to its December 7th, 2022, letter to Mr. Ray offering cooperation with Chapter 11 Debtors.
However, the commission is concerned that the Debtors’ refusal to allow the Court Supervised Joint Provisional Liquidators access to FTX’s AWS system is hindering its investigation.
According to the statement, the authorities in relevant jurisdictions should aim to both pursue justice and ensure that all customers and creditors of FTX receive full restitution, with the cooperation of supervisory authorities in each country.
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