New FTX CEO Under Fire: BSC Accuses Ray Of Making Misstatements

Dec. 27, 2022
New FTX CEO Under Fire: BSC Accuses Ray Of Making Misstatements

The Bahamian Securities Commission accuses new FTX CEO Mr. John J. Ray III of making misstatements, which the BSC says in a statement is just an excuse for attention-grabbing rather than cooperating, as a dispute over competing bankruptcy processes intensified when Ray spoke before the U.S. House Committee on Financial Services.

On 12 December morning, only hours after, the  CEO of the exchange, Sam Bankman-Fried, was arrested in the Bahamas. House FSC conducted a hearing on the fall of FTX.

SBF made an appearance in a Bahamian court for his trial, although John J. Ray III, FTX’s new CEO, was the sole witness at the session. Several aspects of John Ray’s testimony stood out throughout the four-hour session, which covered a lot of terrains and left many issues unresolved.

John Ray said that Sam Bankman-Fried and the disturbed crypto exchange Alameda Research were all given free rein. Furthermore, there were no differences between FTX, Alameda Research, and other companies that sought bankruptcy protection last month.

However, Ray also called FTX’s current financial situation the worst mess he has seen in his career. He claims that the multi-billion dollar company was conducting its accounting using a small business bookkeeping software (Quickbooks).

New FTX CEO Appears To Make “Advance Questionable Agendas”

According to the BSC’s statement:

Mr. John J. Ray III, the representative of the U.S. FTX debtors, which do not appear to be concerned with facts but rather, appears intended only to make headlines and advance questionable agendas.

BSC said that Ray had referred to emails sent and received by and between SBF and Bahamian officials but with redactions. The purpose of the redactions was to give the Commission and SBF’s communications a misleading impression.

These omissions are alarming since, as Mr. Ray is aware, SBF admitted in the complete email that he had “not briefed the Securities Commission.”

Additionally, the Commission was disturbed by the fact that, intentionally or mistakenly, Ray’s filing and communications continually confused the actions of the Bahamas government, the BSC, and Court-appointed liquidators.

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The filing further noted that the Securities Commission is still investigating the reasons behind FTX’s collapse. It will provide all applicable conclusions and recommendations in the proper venue when it is finished.

BSC also asserts that those found guilty of misconduct would be held responsible in line with Bahamian law. Therefore, it has been necessary for the Securities Commission to ask Ray’s representatives not to obstruct that inquiry.

Ammar Raza

Associate editor
Ammar Raza is an individual with a strong interest in the world of cryptocurrency. He has written extensively on topics such as non-fungible tokens, decentralized apps, and blockchain technology. In addition, he is passionate about collaborating with innovative companies to drive meaningful change.

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