
The Bahamas Securities Commission (SCB) said in a Nov. 23 press statement that FTX CEO John Ray III directed unauthorized access to the troubled exchange’s systems after it filed for bankruptcy. rejected the claim.
The Bahamas Securities Commission has released a statement regarding the transfer motion in the FTX Digital Markets Chapter 15 Minutes. https://t.co/CB5f7w1wGT pic.twitter.com/ZMqrbU6vhf
Bahamas Securities Commission (@SCBgov_bs) November 24, 2022
SCB said FTX’s CEO was “unscrupulous,” relying on a personal statement declaring the exchange “unreliable” and “potential for significant compromise.” It said it made an inaccurate claim.
The regulator defended its position and said its timely action to protect client funds was “misunderstood.”According to SCB, a court order dated Nov. 12 removed FTX’s assets. Approved to be transferred to a wallet under its control.
The regulator added that this timely action protected the digital assets under its control from associated risks such as hacking and compromise.
SCB stressed that the statement made by FTX proved the prudence of its decision, with the exchange stating:
And they continue to face new hacking attempts.
Court filings filed by FTX on November 17 said it had credible evidence that the Bahamian government was responsible for directing unauthorized access to its systems after filing for bankruptcy.
The exchange also claimed that former CEO Sam Bankman-Fried and CTO Gary Wang were behind the Nov. 13 event.
Meanwhile, the Supreme Court of the Bahamas ordered the bankrupt cryptocurrency exchange to compensate and reimburse SCB for the costs it incurred while in custody of its digital assets.