As most folks who have any interest in the FTX Saga knows that the regulators in the Bahamas are holding three and half billion dollars in FTX customer assets: SOURCE, but where it gets juicy is it's the back and forth between the new FTX honchos and the Bahamas Securities Commission.
There is pushback by the Securities Commission of The Bahamas (SCB) against statements made by new Chief Executive John J. Ray III as part of bankruptcy proceedings.
Among the points contested by the SCB were the the Securities Commission of the Bahamas' own calculations regarding the value of assets, which it's been holding since the bankruptcy filing by FTX last month.
SBC PUTS IT ON BLAST
The SBC shared a Media Release on Twitter where they lead with a correction to material misstatements made by Chapter 11 debtors. The Tweet
Bahamian authorities point out that these are worth $3.5 billion, though the price is based on market value at the time the assets were seized, with a current value more than likely lower and possibly by a lot.
FTX contends the calculations and said the assets were worth only $296 million at the time the Bahamas took custody of them.
The court filing as part of the FTX bankruptcy proceedings, their new management claimed it had been subject to “stonewalling” by the SCB, saying the regulator and other Bahamian authorities had shown “a complete refusal to provide any information whatsoever, including an accounting of diverted assets”.
This is where the SCB came back hard this week, saying FTX’s statement was based on incomplete information, and that the debtors had chosen not to use their ability to request information from the Joint Provisional Liquidators overseeing the bankruptcy process.
“The US Debtors’ continued lack of diligence when making public statements concerning the Commission is disappointing, and reflects a cavalier attitude towards the truth and towards The Bahamas that has been displayed by the current officers of the Chapter 11 Debtors from the date of their appointment by Sam Bankman-Fried,” the SCB said. SOURCE
The same release also singled out John J. Ray III, who was added as Sam Bankman-Fried's replacement CEO on the day the company filed for bankruptcy.
Per the tweeted release by the SCB:
“Mr. Ray has not once reached out to the Commission to discuss any of his concerns before airing them publicly,” the SCB said. “The Commission has still not received a response to its 7 December 2022 letter to Mr. Ray offering cooperation with Chapter 11 Debtors.”
Balling Up Son!
The assets controlled by the SCB have been the bone of contention between the Bahamian regulators and the new heads at FTX put in after the bankruptcy filing.
In further statements, the Bahamas Securities Commission responded to another claim made by the debtors, that the funds in question were “stolen”, as well as pushing back on “unfounded” claims that it directed FTX employees to mint $300 million in new FTT tokens. SOURCE
Little did I know that when I entered the world of Crypto that mad drama was going to be part of this world.
