Bahamian Securities Regulator Warns FTX CEO John Ray Not To 'Obstruct' Probe, As He Gives Testimony

The Bahamas securities regulator has reacted sharply to what it says are "misstatements" made by FTX CEO John J. Ray III, accusing him of hindering an inquiry into the defunct cryptocurrency exchange.

The Bahamas Securities Commission (BSC) said in a statement that Ray was more interested in garnering attention than cooperating, as a dispute over competing bankruptcy processes intensified when Ray spoke before the U.S. House Committee on Financial Services.

The BSC said in a statement that, “Key misstatements made by John J Ray III… do not appear to be concerned with facts but rather, appear intended only to make headlines and advance questionable agendas.”

The regulator added that documents released by FTX were intended to give a misleading impression of discussions between former CEO Sam Bankman-Fried and the Commission.

According to a court document submitted by FTX on Monday, “Bankman-Fried and [co-founder Gary] Wang were in close and frequent contact with the Commission and Bahamas Attorney General Ryan Pinder throughout the week” leading up to the collapse of the crypto exchange in early November.

In the filing, FTX references an email Bankman-Fried sent to Pinder in which he promised to permit Bahamians to withdraw their money.

Also read: No, Not The Luxury Villa! FTX's Bahamas Liquidators Want To Keep $200M Property

Bahamas Government Confused With Ray's Filings

In a media statement, the BSC said Ray’s filings “continue to wrongfully confuse” the Bahamian government, the Commission and court-approved liquidators.

“Unfortunately, it has been necessary for the Securities Commission to make a request to Mr. Ray’s representatives to not obstruct that investigation. Mr. Ray has not once reached out to the Securities Commission to discuss any of his concerns before airing them publicly,” the Commission further said.

“The Securities Commission continues to conduct a comprehensive and diligent investigation into the causes of FTX’s failure,” it added.

Bahamian officials and former employees are demanding access to FTX IT systems and claim that villas purchased for FTX staff in the Bahamas were incorrectly included in Chapter 11 bankruptcy hearings that began in Delaware on Nov. 11.

Lawyers are locked in a dispute over how to wind down Bankman-Fried's vast empire.

On Monday, Pinder acknowledged that at the request of the American authorities, he had authorized the arrest of Bankman-Fried.

The U.S. Department of Justice, Securities and Exchange Commission and Commodity Futures Trading Commission filed concurrent accusations against the former top executive on Tuesday.

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