The allegations made by the FTX debtors have been rejected by the Securities and Exchange Commission of The Bahamas (SCB), which also expresses concern that the investigation has been hampered.

According to a statement made public on January 3, the SCB had to provide clarifications regarding material inaccuracies made by John J. Ray III, the representative of the US-based FTX debtors, in press and court files.

The Chapter 11 Debtors had publicly challenged the Commission’s assessments of the value of digital assets that had moved into digital wallets under the Commission’s authority in November 2022.

It stated that these assertions were based on inadequate information and that the debtors failed to exercise due diligence in obtaining information from the Joint Provisional Liquidators. Furthermore, he alleged that these statements were based on incorrect information.

During a court filing before the United States House Committee on Financial Services, FTX CEO John J. Ray III testified under oath and made public statements alleging that the Commission directed FTX to mint a substantial amount of new tokens. This accusation was made in the statement.

Chapter 11 Debtors have also said that digital assets that are in the custody of the Commission and held in trust for FTX customers and creditors have been stolen. However, the Chapter 11 Debtors have not provided any evidence to support their claims.

The Commission expressed concern that its investigation is being hampered by Chapter 11 Debtors refusing to allow Court Supervised Joint Provisional Liquidators access to FTX’s AWS System. The Commission is concerned that this refusal could jeopardize the investigation.

The announcement by the Bahamian securities regulator follows news of court filings made in December 2022, in which FTX lawyers claimed that the Bahamian government had requested that former FTX CEO Sam Bankman-Fried (SBF), issued a new cryptocurrency. controlled by local officials. The announcement comes after the news was made public.

According to the original allegations, the Bahamas regulator allegedly requested that SBF issue new digital assets worth a total of hundreds of millions of dollars.