The Bahamas Securities Commission has chastised FTX’s new CEO for his comments about the ongoing investigation into the bankrupt cryptocurrency exchange.
The Bahaman regulator, in a press release did not directly address the specific statement of John J. Ray III with which it disagrees, but did address recent reports that the Bahamas’ government had asked former CEO Sam Bankman-Fried to create a new multi-million token and hand over control to them.
Access to FTX Critical Computer Systems
According to the report, Bahamas officials attempted to assist Bankman-Fried in regaining access to FTX’s critical computer systems. According to US lawyers, Bahamas officials were “responsible for directing unauthorized access” to FTX systems in order to seize control of digital assets under the supervision of a US court.
The securities regulator stated they were the first to take harsh action against the defunct exchange and its CEO. In response to rumors about digital asset custody, the press release stated that the authorities secured the transfer of potentially “commingled digital assets” of the FTX exchange on orders issued by the Bahamas’ supreme court. The press release stated;
“The Commission holds those assets as trustee only (under Bahamian Law), and they will be ultimately distributed, to creditors and clients of FTX, wherever they may be located, in accordance with the court’s direction.”
Use of Redacted Email Correspondence
The Bahamas regulator also chastised Ray for using “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 scenario.
Ray and his representatives were asked not to “obstruct the investigation,” and the CEO was accused of not first clearing his concerns with the commission before airing them publicly. Bankman-Fried was apprehended by Bahamas authorities late on December 12 at the request of the US government. The Securities and Exchange Commission and the Commodity Futures Trading Commission charged Bankman Fried with defrauding US investors the next day.
SBF Bail Denied
Bankman-Fried’s quest to be released on bail was denied on December 13. A Bahamas Magistrate Court denied the application, citing a “risk of flight” as the reason.
The counsel for Bankman-Fried had requested bail be set at $250,000, arguing that the 30-year-old crypto executive suffered from “depression” and “insomnia,” does not possess a criminal record, and did not flee the Bahamas despite “ample opportunity” to do so.
SBF’s attorneys also claimed that their client hasn’t taken any medications, including “Adderall” and “anti-depressants,” since his arrest. The lawyers also stated that if granted bail, SBF does not object to electronic monitoring or reporting to a local police station.
Despite the fact that Judge Ferguson-Pratt had previously stated that the SBF had the right to request bail, the judge denied the request from Bankman-lawyers, Fried’s ordering the crypto executive to be held in custody at the Bahamas Department of Corrections until Feb. 8, 2023. The case has been rescheduled for that date.
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