- The Securities Commission of The Bahamas has refuted claims that it instructed the exchange to “mint a substantial amount of new tokens”
- The agency also expressed concern that the investigation into the collapse of FTX has been hindered
- John Ray III told a congressional that he had someone minting new tokens
The Securities Commission of The Bahamas (SCB) has refuted the claims made by FTX debtors that it instructed the exchange to “mint a substantial amount of new tokens” and expressed concern that the investigation into the collapse of FTX has been hindered. In a statement released on January 3, the SCB stated that it had to correct false statements made by John J. Ray III, the representative of the US-based FTX debtors, in press and court documents.
Government Allegedly Requested Mas New Token Minting
The Bahamas government was alleged by Ray to have collaborated with former FTX CEO Sam Bankman-Fried to create a new cryptocurrency that would be controlled by Bahamas officials. According to lawyers for FTX, the government requested that Bankman-Fried mint digital assets worth “hundreds of millions of dollars” following the collapse of FTX in November and transfer them to the control of island officials.
There are also reports that Bahamas officials attempted to help Bankman-Fried regain access to key FTX computer systems and may have “directed unauthorized access” to the platform’s systems in order to seize control of digital assets under the supervision of a US court.
Allegations Based on Incomplete Information, Says SCB
Ray told the U.S. House of Financial Services Committee last month that he witnessed someone minting new coins while he and his team were attempting to take control of the platform’s computer systems. In response, the SCB said that these statements were based on incomplete information and that the debtors had not adequately inquired for information from the Joint Provisional Liquidators.
It also added that the Chapter 11 Debtors had publicly disputed the SCB’s calculations of digital assets transferred to digital wallets under the SCB’s control in November 2022.
