Bahamas: FTX's New CEO Made Misstatements, Bahamas Did Not Instruct SBF to Mint Substantial Amount of New Tokens

The Securities Commission of The Bahamas issued a release stating that it must once again correct material misstatements made by Mr. John J. Ray III, the representative of the U.S. FTX debtors, in both the press and court fillings.

On 30 December 2022, the Chapter 11 Debtors publicly challenged the Commission's calculations of the digital assets which were transferred to digital wallets controlled by the Commission on 12 November 2022 for safekeeping in the exercise of its powers as regulator acting under the authority of an Order made by the Supreme Court of The Bahamas. Such public assertions by the Chapter 11 Debtors were based on incomplete information.

Previously, Mr. Ray made public statements alleging that the Commission gave instructions to "mint a substantial amount of new tokens." These statements were made in a court filing on 12 December 2022, without evidence, and then made again under oath, on 13 December, before the United States' House Financial Services Committee. Statements suggesting that Bahamian officials directed FTX employees to mint $300 million in new FTT tokens were widely reported by the international press. Such unfounded statements have the impact of promoting mistrust of public institutions in The Bahamas. 

The Commission addressed the process by which it took possession of digital assets under the custody or control of FTX Digital Market Ltd. or its principals, both in a court filing and, its statement of 29 December 2022.