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Bahamas Securities Commission Clarifies Value Of Seized Assets, Lashes Out At John Ray 

Author: Sohrab Khawas

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    In court filings, John Ray, CEO of FTX and a representative of the Chapter 11 Debtors in the United States, claimed that the Securities Commission of the Bahamas (SCB) had instructed FTX to mint $300 million in fresh FTT tokens in 2022.

    These claims were made before the United States House Financial Services Committee without evidence and got extensive international media coverage. The Chapter 11 Debtors also claimed that digital assets held in trust by the SCB for the benefit of FTX consumers and creditors were stolen, but provided no supporting proof.

    Here’s the most recent update. 

    The Bahamas Securities Commission rebukes John Ray over the value of his seized FTX assets

    The Securities Commission in response to John Ray said that

    “the Chapter 11 Debtors chose not to utilize their ability to request information from the Joint Provisional Liquidators.” In particular, it objected to Ray’s claims that the commission had ordered the minting of “a substantial amount of new tokens.” The authority also claimed that the reporting of the statements has an influence on the integrity of institutions in the Bahamas.

    Following the filing of the FTX Debtors’ Chapter 11 cases, cryptocurrency belonging to the FTX Debtors was moved without their permission, including around 195 million FTT, 1,938 ETH, and other trivial currencies. According to a news release from the Bahamas Commission, the value of the cryptocurrency in their possession at the time of transfer was greater than $3.5 billion.

    The Bahamas Commission gave Mr. Bankman-Fried and Mr. Wang instructions to transfer digital assets to a Fireblocks wallet based on evidence that the FTX Debtors had access to. At spot prices at the time of transfer, the cryptocurrency in this Fireblocks wallet was worth about $296 million. 

    FTX Japan has announced that it will begin recovering client assets in February of next year. Customers who want to withdraw their lost funds must first register an account with Liquid Japan. Withdrawals will start in the middle of February after each person’s balance has been checked.

    Sam Bankman-Fried, the founder of FTX, is anticipated to enter a not-guilty plea. SBF’s defense stands in sharp contrast to that of other top exchange executives who have already entered guilty pleas. The two executives are Gary Wang, CTO of FTX, and Caroline Ellison, of Alameda Research. 

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