The Securities Commission of The Bahamas (SCB) has thrown a wrench into the FTX saga by denying the claims made by the FTX debtors and warning that their ongoing investigation into the matter may have reached a state of chaos.
The Turbulent Waters of FTX’s Chapter 11 Debtors
In a press release dated Jan. 3, the SCB clarified that it has had to rectify several material misstatements issued by John J. Ray III, the U.S.-based representative for the debtors. One cannot help but wonder if the debtors took their investigative cues from a game of Telephone!
Digital Assets and Calculations: A Math Problem Gone Wrong
The SCB took particular issue with the Chapter 11 Debtors’ criticisms regarding calculations of digital currencies that ended up in wallets controlled by the commission in November 2022. According to the SCB, the details these debtors publicly challenged were based on incomplete information. It appeared as though they skipped their due diligence by not consulting the Joint Provisional Liquidators.
Claims of Grand Deception
- Ray’s claim that the Commission instructed FTX to mint a range of new tokens is a hot topic, especially considering he made this assertion under oath.
- The debtors further alleged that digital assets controlled by the Commission had been “stolen”, a sensational claim with little to no substantiation.
It’s almost like a TV drama unfolding—just without the popcorn (though some may say the drama is so rich that popcorn is entirely optional).
Compromised Investigations and Access Denied
The SCB articulated its growing frustration, revealing concerns that its investigation is being hampered. This hinderance is supposedly due to the Chapter 11 Debtors’ reluctance to grant the Court Supervised Joint Provisional Liquidators access to FTX’s AWS System. Relationships are being strained faster than you can say “blockchain!”
Hope for Good Faith
In a moment of diplomatic finesse, the SCB expressed its hope that the Chapter 11 Debtors will engage with the situation in good faith—after all, they claim to have the interests of FTX customers and creditors at heart.
The Bahamas Government and the Token Minting Request
Adding fuel to the fire, reports surfaced in December, revealing FTX attorneys purporting that the Bahamian government pushed Sam Bankman-Fried to mint new crypto controlled by local officials. Who knew that the Bahamas was also a players’ market for cryptocurrencies? Initial claims suggested that the Bahamian regulator asked SBF to create new assets worth hundreds of millions of dollars. Talk about a lucrative request!
In conclusion, as FTX battles through the aftermath of its collapse, all eyes are on the unfolding drama between the SCB, the debtors, and the cryptographic assets that seem to have a life of their own.
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