{"id":16125,"date":"2023-01-05T01:13:08","date_gmt":"2023-01-05T01:13:08","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bahamas-regulator-disputes-ftxs-claim-about-value-of-seized-cryptocurrencies-regulation-bitcoin-news\/"},"modified":"2023-01-05T01:13:08","modified_gmt":"2023-01-05T01:13:08","slug":"bahamas-regulator-disputes-ftxs-claim-about-value-of-seized-cryptocurrencies-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bahamas-regulator-disputes-ftxs-claim-about-value-of-seized-cryptocurrencies-regulation-bitcoin-news\/","title":{"rendered":"Bahamas Regulator Disputes FTX’s Claim About Value of Seized Cryptocurrencies \u2013 Regulation Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The Securities Commission of the Bahamas has disputed FTX\u2019s claim that the value of the cryptocurrencies it seized from the bankrupt crypto exchange was not $3.5 billion. The new FTX chief\u2019s \u201ccontinued lack of diligence when making public statements concerning the Commission is disappointing,\u201d the Bahamian regulator stressed.<\/strong><\/p>\n

Bahamas Regulator and FTX Disagree on the Value of Seized Crypto Assets<\/h2>\n

The Securities Commission of the Bahamas issued a statement Monday to \u201ccorrect material misstatements\u201d made by the new FTX CEO, John J. Ray III, regarding the value of the cryptocurrencies it seized from FTX. Ray represents U.S. FTX debtors in the crypto exchange\u2019s bankruptcy filing (Chapter 11 Debtors).<\/p>\n

The Bahamian regulator explained that on Dec. 30, 2022, FTX and Ray \u201cpublicly challenged the Commission\u2019s calculations\u201d of the value of the crypto assets transferred to its digital wallets on Nov. 12. According to the Commission, over $3.5 billion<\/a> in cryptocurrencies were seized from FTX. However, Ray argued that the value of the digital assets transferred on that date was actually about $296 million.<\/p>\n

In its Monday statement, the Commission said that the U.S. FTX debtors\u2019 calculations \u201cwere based on incomplete information,\u201d asserting:<\/p>\n

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The Chapter 11 Debtors chose not to utilize their ability to request information from the joint provisional liquidators pursuant to a court order of the Supreme Court of the Bahamas\u2026 The U.S. debtors\u2019 continued lack of diligence when making public statements concerning the Commission is disappointing.<\/p>\n<\/blockquote>\n

The Bahamas regulator alleged that the new FTX CEO made false statements regarding the Commission in a court filing on Dec. 12, 2022, \u201cwithout evidence,\u201d and again under oath on Dec. 13 before the U.S. House Committee on Financial Services. The regulator specifically mentioned the accusation<\/a> that it asked former FTX CEO Sam Bankman-Fried (SBF) to mint \u201ca substantial amount of new tokens\u201d during the crypto exchange\u2019s bankruptcy process.<\/p>\n

The Commission added:<\/p>\n

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Mr. Ray has not once reached out to the Commission to discuss any of his concerns before airing them publicly.<\/p>\n<\/blockquote>\n

Ray was appointed the new FTX CEO and its chief restructuring officer when Bankman-Fried stepped down as the crypto exchange filed for bankruptcy<\/a>. Ray, who also led Enron during the energy giant\u2019s bankruptcy, said<\/a> about FTX in November: \u201cNever 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.\u201d<\/p>\n

The Securities Commission of the Bahamas further revealed that the new FTX CEO has not responded to its Dec. 7 letter in which the Bahamian regulator offered \u201ccooperation with Chapter 11 Debtors.\u201d<\/p>\n

Do you believe the Securities Commission of the Bahamas or the new FTX management regarding the value of seized cryptocurrencies? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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