In a shocking emergency court filing on Thursday, FTX stated that there is evidence suggesting that Bahamian regulators gave former CEO Sam Bankman-Fried instructions to access FTX systems “unauthorizedly” in order to obtain the company’s digital assets after it had applied for bankruptcy protection.
According to the filing, Bankman-Fried turned up control of those assets to the government of the Bahamas. It makes reference to an interview that Bankman-Fried gave to Vox on Wednesday and in which she shows extreme contempt for authorities.
He yelled, “F—- regulators,” during the interview. “They worsen everything. They offer no protection at all for clients.
He said, “You know what was probably my biggest single f——p.” chapter eleven
The allegations were made by FTX in a motion filed in Delaware’s US Bankruptcy Court. In that motion, FTX claimed that the alleged behaviour “seriously calls into doubt” a request made by Bahamian officials to be recognised as the bankruptcy’s liquidators.
′′[I]n connection with investigating a hack on Sunday, November 13, Mr. Bankman-Fried and [FTX co-founder Gary] Wang stated in recorded and confirmed texts that “Bahamas regulators” ordered that certain post-petition transfers of Debtor assets be made by Mr. Wang and Mr. Bankman-Fried (who the Debtors understand were both effectively in the custody of Bahamas authorities), and that such assets were “custodied on FireBlocks under control of Ba
Accordingly, the Debtors “have credible evidence that the Bahamian government is accountable for directing unauthorised access to the Debtors’ systems for the purpose of obtaining digital assets of the Debtors—which took place after the commencement of these cases. Thus, there is serious doubt regarding the JPLs’ appointment and the Chapter 15 Case’s legitimacy, according to the filing.
Sam Bankman-Fried could not be reached for comment right away. A request for comment was not answered by Landis Rath & Cobb or Sullivan & Cromwell, the law firms representing FTX. An email sent to the Securities Commission of the Bahamas did not immediately receive a response from CNBC.