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 known as the allegations “intemperate and inaccurate,” and mentioned it had sought the order from the nation’s Supreme Courtroom to guard the embattled alternate’s digital belongings towards “the dangers related to hacking and compromise.”

Sam Bankman-Fried’s collapsed crypto enterprise, below new management, has kicked off insolvency proceedings within the U.S. Chapter Courtroom 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 go well with for cross-border insolvency proceedings in a New York Courtroom.

FTX, in a consequent courtroom submitting, requested the courtroom to permit the chapter 15 submitting to be transferred to Delaware so that each one proceedings may happen in a single venue. In the identical submitting, FTX accused the Bahamian authorities of directing unauthorized entry to FTX’s programs with the intention 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 courtroom listening to for the chapter 11 proceedings, FTX’s attorneys mentioned 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 accomplice in Sullivan & Cromwell’s Finance and Restructuring Group, mentioned 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 mentioned 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 ‘critically compromised.’”

Statements made by different FTX officers concerning the alternate struggling “vital thefts” and experiences that their programs had 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