Key Takeaways
- Courtroom filings accused Bahamas officers of asking Bankman-Fired to mint new tokens and switch them to officers
- The Securities Fee of the Bahamas (SCB) has additionally fired again in opposition to claims tokens underneath its management had been stolen
- Laborious to know what allegations are true, however anyone remotely linked to FTX is popping out badly amid the entire debacle – and that features the Bahamas regulator
There have been a whole lot of startling revelations to emerge over the past month or two following FTX’s spectacular collapse. However probably the most insidious, for me a minimum of, was that the Bahamas authorities labored with Bankman-Fried to mint a brand new token within the wake of the alternate’s collapse.
Attorneys accuse Bahamas officers of making an attempt to mint new tokens
Attorneys for FTX mentioned in a courtroom submitting in December that Bahamas authorities officers requested Bankman-Fried to mint new digital belongings value “a whole bunch of hundreds of thousands of {dollars}”, whereas requesting that the disgraced CEO switch the brand new tokens over to the management of presidency officers.
The report, revealed by Bloomberg additionally outlines that Bahamas officers labored to attempt to assist Bankman-Fried regain entry to important laptop methods on the FTX platform. The officers had been “answerable for directing unauthorized entry” to the methods to be able to take management of a few of the digital belongings that had been on the FTX platform.
This was all significantly regarding as cash was evidently transferring on the blockchain after FTX’s collapse. A reported “hack” led to $477 million of crypto transferring within the days after the chapter submitting, with the hacker then trying to bridge the funds into numerous entities and currencies.
(1/2) Exchanges must be conscious that sure funds transferred from FTX World and associated debtors with out authorization on 11/11/22 are being transferred to them by means of intermediate wallets.
—FTX (@FTX_Official) November 20, 2022
Whether or not this has any connection to the story concerning the Bahamas’ stress on Bankman-Fried is pure hypothesis, and to be clear, no proof in any respect means that authorities have something to do with it.
The Bahaman regulator right now launched a press release combating again in opposition to the aforementioned feedback by John Ray III, the consultant of US-based FTX debtors. The assertion learn that it “should as soon as once more right materials misstatements made by Mr. John J. Ray III…in each the press and courtroom filings”.
The assertion outlined that Ray’s courtroom filings, which had been “underneath oath”, had been “with out proof”, staunchly firing again in opposition to the declare that officers had ordered Bankman-Fried to mint new tokens, in addition to instructing “workers (of FTX) to mint $300 million in new FTT tokens”. It went on to dispute the declare that digital belongings underneath the management of the Securities Fee of the Bahamas (SCB) had been “stolen”.
What truly occurred?
In fact, it’s unimaginable to know the ins and outs of the debacle right here. However what is apparent is that this whole saga continues to get extra sordid and embarrassing for cryptocurrency as an entire every day, and anyone remotely linked to FTX is wanting worse and worse as time goes on.
The was clearly an enormous failure with regard to regulation within the Bahamas, and the SCB is getting rightfully hammered because of this. Whether or not any of the opposite allegations maintain water, we do not need proof to opine on, however I am certain time will inform.
With over a million collectors, $8 billion in lacking shopper belongings, and lots of lives ruined, the unhappiness and gravity of the FTX scenario is hard to overstate. Now, it is time to type by means of the mess and attempt to discover out who precisely was at fault past Bankman-Fried, as a result of there’s greater than sufficient blame to go round.
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