Bahamas AG Says New CEO at FTX “Misrepresented” the Government’s Actions

Ryan Pinder, Attorney General and Minister of Legal Affairs of the Bahamas, has criticized crypto exchange FTX’s new CEO John Ray’s comments on the recent actions taken by the country’s securities watchdog.

Previously, Ray alleged that the Securities Commission of the Bahamas (SCB) directed unauthorized access to the FTX debtors’ systems to obtain the digital assets of the debtors. His comment was in response to a previous action taken by the SCB to transfer all of FTX Digital Markets’ (FDM) assets to a digital wallet under its control. FDM is the Bahamian subsidiary of FTX Trading Ltd.

AG Criticizes Ray’s Remarks

In a National Address on Monday, Pinder defended the commission’s move and criticized Ray’s comments.

According to the AG, Ray “misrepresented the timely action taken by the Securities Commission and used inaccurate allegations.”

He went further to defend the actions taken by the SCB, saying that the speed by the commission to move FTX assets amid its liquidity crunch was “remarkable by any standard.”

“Placing FTX Digital Markets in provisional liquidation was not sufficient to protect the customers and creditors of the company. The Securities Commission secured the assets of FTX Digital Markets to be held on behalf of and for the benefit and restitution of clients and creditors of FTX,” Pinder said.

Notably, the SCB has also previously responded to Ray’s comments, saying that its swift actions to protect customers’ funds have been “misinterpreted.”

AG Blames FTX Fall on Internal Business Failures

During his speech, Pinder also blamed FTX’s dramatic collapse on a very large “internal business failure in part due to questionable internal practices,” adding that it has nothing to do with the fact that the crypto exchange is headquartered in the country.

“Any attempt to lay the entirety of this debacle at the feet of the Bahamas because FTX is headquartered here would be a gross oversimplification of reality,” he said.

The AG also revealed that the crypto exchange is a subject of an active and ongoing investigation by authorities in the country.

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