Bahamas Regulators Slam New FTX Chief For ‘Key Misstatements’

Bahamas regulators today slammed the recently appointed CEO of collapsed crypto exchange FTX for attempting to “advance questionable agendas.” 

In a Tuesday statement sent to the press, the Securities Commission of The Bahamas said John J. Ray III, known for recovering funds for failed companies, “made key misstatements” about his handling of the situation. 

“Mr. Ray has not once reached out to the Securities Commission to discuss any of his concerns before airing them publicly,” the statement read, saying his remarks “do not appear to be concerned with facts but rather appear intended only to make headlines.”

Ray is in charge of overseeing the failed exchange’s bankruptcy process. Bahamas regulators claim Ray’s use of redacted email correspondence between Bankman-Fried and Bahamian officials were “to create a false impression of communications between Mr. Bankman-Fried and the Commission.”

“Every action taken by the Securities Commission of The Bahamas was in strict accordance with our country’s legislation and with orders made by the Supreme Court of The Bahamas,” the statement read. 

It added: “The Commission also finds it disturbing that, either deliberately or through ignorance, Mr. Ray’s filings and communications continue to wrongfully confuse as one, the actions of the Government of The Bahamas, the Securities Commission of The Bahamas and the Court Appointed/Court Supervised Joint Provisional Liquidators.”

There are a number of agencies currently conducting investigations into the collapse of FTX. In addition to those mentioned by the Commission, the company faces scrutiny from the U.S. Justice Department, Securities and Exchange Commission, and the Commodity Futures Trading Commission (CFTC).

During today’s House Financial Services Committee hearing, Ray criticized FTX for allowing employees to handle the firm’s accounting over Slack chats and in QuickBooks, a consumer-level tax software. 

U.S. prosecutors today unsealed eight criminal charges against ex-FTX CEO Sam Bankman-Fried—including money laundering and wire fraud. 

Bahamas cops arrested the disgraced boss on the Caribbean tax haven last night. 

FTX was based in Bahamas—something which lawyers have said may add complexity to the trial.