FTX CEO Allegation Were Misinterpreted

T

he Bahamas Securities Commission (SCB) has called FTX CEO John Ray's allegations inaccurate, saying its actions were 'misinterpreted.' According to the regulator, its timely action protected FTX's assets under its control from hacking and compromise.

The Securities Commission of The Bahamas rejected FTX’s CEO John Ray III’s allegations that it directed unauthorized access to the embattled exchange’s system after it filed for bankruptcy, according to a Nov. 23 press statement.

The SCB said the FTX CEO had based its "intemperate and inaccurate" claims on statements from people that the exchange had labelled as "unreliable" and "potentially seriously compromised."

The SCB stated that its actions were only to protect customers' funds and not meant to be interpreted in any other way. The bank claimed it had gotten a Nov. 12 court order that allowed it to transfer FTX's assets into wallets under the control of the SCB.

By taking this timely action, the regulator was able to protect the digital assets it controls from risks such as hacking and compromise.

SCB believes that FTX's hacking claims validate its original decision, as the exchange said they have "suffered significant thefts" and their systems are still vulnerable to new attacks.

FTX alleged in a court filing on Nov. 17 that the Bahamas government was responsible for directing unauthorized access to its systems after it had filed form bankruptcy, with evidence to back up the claim. The exchange went on to allege that former CEO Sam Bankman-Fried and CTO Gary Wang were behind the events of Nov. 13.

The Bahamas Supreme Court ordered the crypto exchange to reimburse any expenses SCB has occurred while holding its digital assets.

Mike

An editor at Coincrop

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Mike is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely putting his latest car project back together.