FTX debtors' claims have been dismissed by the Securities Commission of The Bahamas (SCB), which also expresses worry that the probe has been "impeded."
The Securities Commission of The Bahamas (SCB) has had to rectify significant inaccuracies that John J. Ray III, the representative of the FTX debtors headquartered in the U.S., made in news releases and court documents, according to a statement issued on Jan. 3.
It claimed that these assertions were supported by "incomplete" information and that the debtors failed to exercise due diligence by contacting the Joint Provisional Liquidators for information.
According to the paper, the Chapter 11 Debtors "publicly challenged" the Commission's assessments of the digital assets transferred to digital wallets under its control in November 2022.
Ray also made public statements saying that the Commission instructed FTX to "mint a substantial amount of new tokens" under "oath" during a court filing before the U.S. House of Financial Services Committee, according to the statement.
Ray was also chastised by the Bahamas regulator for utilizing "redacted email correspondence" between officials and Bankman-Fried. According to the release, the redactions were done to give the impression that Ray was not aware of the entire circumstances.
In addition to requesting that Ray and his agents not "obstruct the investigation," the securities regulator also charged the CEO with failing to first voice his concerns to the commission before going public with them.
The Chapter 11 Debtors' refusal to let the Court Supervised Joint Provisional Liquidators access to FTX's AWS System has raised concerns among the Commission's investigators that their probe may be jeopardized.
According to the release, the SCB is hoping that the Chapter 11 Debtors will proceed with issues in good faith and in the best interest of FTX's customers and creditors.
Without offering any evidence to support their assertions, the Chapter 11 Debtors further claimed that the digital assets held in trust for FTX consumers and creditors by the Commission were "stolen."
The announcement by the Bahamian securities regulator follows news from court documents in December 2022, in which FTX lawyers claimed the Bahamas government apparently demanded that the former CEO of FTX, Sam Bankman-Fried (SBF), launch a new cryptocurrency controlled by local politicians.
According to initial reports, the Bahamas regulator urged SBF to generate new digital assets valued at hundreds of millions of dollars.
