Cryptocurrency News

Bahamas Regulator Disputes FTX’s Claim About Value of Seized Cryptocurrencies – Regulation Bitcoin News

The Securities Fee of the Bahamas has disputed FTX’s declare that the worth of the cryptocurrencies it seized from the bankrupt crypto trade was not $3.5 billion. The brand new FTX chief’s “continued lack of diligence when making public statements concerning the Commission is disappointing,” the Bahamian regulator confused.

Bahamas Regulator and FTX Disagree on the Value of Seized Crypto Property

The Securities Fee of the Bahamas issued a press release Monday to “correct material misstatements” made by the brand new FTX CEO, John J. Ray III, concerning the worth of the cryptocurrencies it seized from FTX. Ray represents U.S. FTX debtors within the crypto trade’s chapter submitting (Chapter 11 Debtors).

The Bahamian regulator defined that on Dec. 30, 2022, FTX and Ray “publicly challenged the Commission’s calculations” of the worth of the crypto property transferred to its digital wallets on Nov. 12. Based on the Fee, over $3.5 billion in cryptocurrencies have been seized from FTX. Nevertheless, Ray argued that the worth of the digital property transferred on that date was really about $296 million.

In its Monday assertion, the Fee mentioned that the U.S. FTX debtors’ calculations “were based on incomplete information,” asserting:

The Chapter 11 Debtors selected to not make the most of their capability to request data from the joint provisional liquidators pursuant to a courtroom order of the Supreme Court docket of the Bahamas… The U.S. debtors’ continued lack of diligence when making public statements in regards to the Fee is disappointing.

The Bahamas regulator alleged that the brand new FTX CEO made false statements concerning the Fee in a courtroom submitting on Dec. 12, 2022, “without evidence,” and once more below oath on Dec. 13 earlier than the U.S. Home Committee on Monetary Providers. The regulator particularly talked about the accusation that it requested former FTX CEO Sam Bankman-Fried (SBF) to mint “a substantial amount of new tokens” throughout the crypto trade’s chapter course of.

The Fee added:

Mr. Ray has not as soon as reached out to the Fee to debate any of his issues earlier than airing them publicly.

Ray was appointed the brand new FTX CEO and its chief restructuring officer when Bankman-Fried stepped down because the crypto trade filed for chapter. Ray, who additionally led Enron throughout the vitality big’s chapter, mentioned about FTX in November: “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.”

The Securities Fee of the Bahamas additional revealed that the brand new FTX CEO has not responded to its Dec. 7 letter wherein the Bahamian regulator supplied “cooperation with Chapter 11 Debtors.”

Do you imagine the Securities Fee of the Bahamas or the brand new FTX administration concerning the worth of seized cryptocurrencies? Tell us within the feedback part under.

Kevin Helms

A scholar of Austrian Economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His pursuits lie in Bitcoin safety, open-source methods, community results and the intersection between economics and cryptography.

Picture Credit: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This text is for informational functions solely. It isn’t a direct provide or solicitation of a proposal to purchase or promote, or a suggestion or endorsement of any merchandise, providers, or corporations. Bitcoin.com doesn’t present funding, tax, authorized, or accounting recommendation. Neither the corporate nor the creator is accountable, instantly or not directly, for any harm or loss brought on or alleged to be brought on by or in reference to using or reliance on any content material, items or providers talked about on this article.