- John Ray is criticized by the Securities Commission of the Bahamas for repeatedly making misleading statements over seized digital assets.
- The commission is disappointed with the cavalier attitude of current FTX officers towards the truth and the Bahamas government.
- FTX Debtors want a return of their cryptocurrencies from the custody of the Bahamas Securities Commission.
The Securities Commission of the Bahamas has criticized the current CEO of FTX exchange, John Ray over statements concerning the seized digital assets of the embattled exchange. The commission faulted the correctness of Ray’s claims over the value of the digital assets transferred to wallets it controlled.
According to a press release by the commission, Ray’s statements about the seized assets were based on incomplete information. It questioned the reluctance of Ray and his team in using their ability to request accurate information from the appropriate quarters over the assets under custody.
The commission expressed its disappointment with the current officers of FTX, describing them as having a cavalier attitude toward the truth and the government of The Bahamas. It took special note of Ray’s allegation that the commission instructed former FTX officers to “mint a substantial amount of new tokens,” regarding it as unfounded and capable of promoting mistrust of public institutions in The Bahamas.
On November 11, 2022, FTX filed for bankruptcy and activated the Chapter 11 Debtors code to allow it to reorganize internally, stay alive as a business, and pay its creditors over time. As part of the reorganization, Sam Bankman-Fried stepped down as the CEO, handing over to John Ray.
A day after the filing, digital assets from FTX were transferred to wallets controlled by the Securities Commission under the instruction of the Supreme Court. The assets are expected to be held in custody while investigations continue over the activities of the now-liquidated exchange.
FTX Debtors have dissociated themselves from approving the transfer of their cryptocurrencies to The Bahamas Securities Commission. According to information provided by them, the transfer was based on instruction by the commission, to which the former officers of the exchange obliged.
The group has requested clarification from the commission over the details of the seized digital assets, identifying variations in the records from both parties. They have also promised to seek the return of the assets. It claims that neither the former FTX officers nor the commission had the right to initiate the transfer of the cryptocurrencies.
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