Bahamas Securities Regulator Blasts ‘Inaccurate’ Accusations Made by FTX

The Securities Fee of The Bahamas is firing again at collapsed crypto alternate FTX’s accusations that the nation had directed unauthorized entry to switch belongings off the platform after FTX filed for chapter safety within the U.S.

In a Wednesday discover, the regulator referred to as the allegations “intemperate and inaccurate,” and stated it had sought the order from the nation’s Supreme Court docket to guard the embattled alternate’s digital belongings in opposition to “the dangers related to hacking and compromise.”

Sam Bankman-Fried’s collapsed crypto enterprise, beneath new management, has kicked off insolvency proceedings within the U.S. Chapter Court docket for the District of Delaware. Shortly after the corporate filed for chapter 11 chapter on Nov. 11, court-appointed liquidators within the Bahamas filed one other chapter 15 swimsuit for cross-border insolvency proceedings in a New York Court docket.

FTX, in a consequent court docket submitting, requested the court docket to permit the chapter 15 submitting to be transferred to Delaware so that each one proceedings might happen in a single venue. In the identical submitting, FTX accused the Bahamian authorities of directing unauthorized entry to FTX’s methods so as to withdraw belongings after the agency had filed for chapter.

The Securities Fee introduced afterwards that it had ordered the contents of FTX’s crypto wallets to be transferred to government-controlled wallets for safekeeping.

On Tuesday, throughout the first court docket listening to for the chapter 11 proceedings, FTX’s legal professionals stated that they had reached an settlement with the Bahamian liquidators to switch their New York case to Delaware. Whereas saying the settlement, James Bromley, a companion in Sullivan & Cromwell’s Finance and Restructuring Group, stated FTX had proof displaying that “there have been motion of belongings out of the debtors’ estates to the Bahamas.”

The Fee’s assertion comes after the listening to, and stated it was “regarding” that FTX “selected to depend on the statements of people they’ve (in different filings) characterised as unreliable sources of knowledge and doubtlessly ‘severely compromised.’”

Statements made by different FTX officers concerning the alternate struggling “vital thefts” and studies that their methods have been compromised “reinforces the knowledge of the Fee’s immediate motion to safe these digital belongings.”

Learn extra: Bahamas Might Have Directed ‘Unauthorized’ FTX Transactions, Submitting Says