Sam Bankman-Fried, Founder and CEO of FTX Cryptocurrency Derivatives Exchange, speaks during an interview on an episode of Bloomberg Wealth with David Rubenstein in New York, US, on Wednesday, August 17, 2022.
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FTX said in an emergency court filing Thursday that evidence indicated that regulators in the Bahamas directed former CEO Sam Bankman-Fried to obtain “unauthorized access” to FTX’s systems to acquire the company’s digital assets after it filed for bankruptcy protection.
The application said that Bankman-Fried transferred these assets to the custody of the Bahamas government. He cites an interview published by Vox on Wednesday in which Bankman-Fried expressed his deep disdain for regulators.
“The organizers,” he said in the interview. “They make everything worse. They don’t protect customers at all.”
“Do you know what was probably my biggest single?” Asked. Chapter 11.
The charges were brought by FTX in a suit in United States Bankruptcy Court in Delaware. In the motion, FTX said the alleged behavior puts “serious question” of a request from regulators in the Bahamas to recognize them as liquidators in the event of bankruptcy.
“[I]n contact with the investigation into the hacking of Sunday, November 13, Mr. Bankman Fried’s [FTX co-founder Gary] Wang stated in recorded and substantiated transcripts that the “Bahamian regulators” ordered certain transfers of the debtor’s assets after petitioning by Mr. Wang and Mr. Bankman-Fred (whom the debtors understand were in the custody of the Bahamas authorities) and the suit states that these assets were “withheld The FireBlocks are under the control of the Government of The Bahamas”.
“The debtors therefore have credible evidence that the Government of The Bahamas is responsible for directing unauthorized access to the debtors’ systems for the purpose of acquiring the debtors’ digital assets – which occurred after these cases were initiated. JPL’s designation and recognition hence the Chapter 15 case is seriously called into question.” Continue filing.
Sam Bankman Fried could not be reached for comment. The law firms representing FTX, Landis Rath & Cobb and Sullivan & Cromwell did not respond to a request for comment. CNBC did not immediately receive a response to an email to the Bahamas Securities Commission.