Bahamas denies claims they told Bankman-Fried to mint new coins

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Key Takeaways Court Filings Accuse Bahamian Officials Asked Bankman-Fired To Mint New Tokens And Transfer Them To Officials But Anyone Connected Remotely To FTX Comes Out Badly Amid The Whole Debacle – And That includes Bahamas regulator

Many startling revelations have emerged over the past two months following FTX’s dramatic collapse. But one of the most insidious, at least for me, was that the Bahamian government worked with Bankman-Fried to mint a new token in the wake of the stock market crash.

Lawyers accuse Bahamian officials of trying to mint new tokens

Lawyers for FTX said in a December court filing that Bahamian government officials asked Bankman-Fried to create new digital assets worth “hundreds of millions of dollars,” while asking the CEO in disgrace to transfer the new tokens under the control of government officials.

The report, published by Bloomberg, also highlights that Bahamian officials have been working to try to help Bankman-Fried regain access to critical computer systems on the FTX platform. Officials were “in charge of directing unauthorized access” to systems in order to take control of some of the digital assets that were on the FTX platform.

All of this was of particular concern as money was obviously moving across the blockchain following the collapse of FTX. A reported “hack” resulted in the displacement of $477 million worth of crypto in the days following the bankruptcy filing, with the hacker then seeking to link the funds to various entities and currencies.

(1/2) Exchanges should be aware that certain funds transferred from FTX Global and related obligors without authorization on 11/11/22 are being transferred to them via intermediary wallets.

— FTX (@FTX_Official) November 20, 2022

Whether this has anything to do with the story regarding Bahamian pressure on Bankman-Fried is pure speculation, and to be clear, there is no evidence to suggest authorities had anything to do with it.

The Bahamian Regulator today issued a statement against the aforementioned comments by John Ray III, the representative of US-based FTX Debtors. The statement said she “must once again correct the material inaccuracies made by Mr. John J. Ray III…in the press and court documents.”

The statement pointed out that Ray’s court documents, which were “under oath”, were “without evidence”, strongly hitting back at the claim that officials ordered Bankman-Fried to mint new tokens, as well as asking the “employees (of FTX) to mint $300 million in new FTT tokens”. He then disputed the allegation that digital assets under the control of the Securities Commission of The Bahamas (SCB) had been “stolen”.

What really happened?

In truth, it is impossible to know the ins and outs of the debacle here. But what is obvious is that this whole saga continues to grow more sordid and embarrassing for cryptocurrency as a whole every day, and anyone remotely logged into FTX looks worse and worse. over time.

This was obviously a massive regulatory failure in the Bahamas, and the SCB is rightly hammered. Whether either of the other allegations hold water, we have no evidence to comment on, but I’m sure time will tell.

With over a million creditors, $8 billion in client assets missing, and many lives ruined, the sadness and gravity of the FTX situation is hard to overstate. Now it’s time to sort through the mess and try to figure out who exactly was at fault beyond Bankman-Fried, because there’s more than enough blame for everyone.

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