On Thursday news surfaced that bankrupt crypto exchange FTX alleged former CEO Sam Bankman-Fried transferred assets to the Bahamian government after they had been placed under custody through the company’s chapter 11 bankruptcy filing. The claim was alleged to have been included in a petition officially filed and submitted to the overseeing US Bankruptcy Court of Delaware.
It has also been reported that in the submitted petition, FTX disclosed that officials from the Bahamian government ordered SBF to gain ‘unauthorized access’ while he was allegedly held in their custody. The saga of FTX has been a constant in the latest crypto news daily since customer withdrawals began being halted over a full week ago.
When, How, And What Happens Next?
The petition did not reveal when the unauthorized access actually occurred, but Adam Taggart, CEO of Wealthion, a podcast about money and the financial markets, weighed in on his own with a tweet published from his account on Thursday. In the tweet, Taggart references an article and starts the tweet off with, “Remember the mysterious hack of FTX over the last weekend? Turns out it was indeed SBF.”
The Securities Commission of the Bahamas has also since confirmed that they did in fact direct the breach and unauthorized access into the Debtor’s system to obtain the assets held in custody. On Wednesday a story surfaced on VOX with references to a long DM conversation in which SBF disclosed things for the first time publicly.
The former CEO expressed his belief that the bankruptcy was not the right move, that he does not in fact align with regulators and has no faith in their desire or ability to protect customers in the financial markets, amongst other shocking revelations. What’s next exactly, remains to be seen, but it seems apparent that the Bahamian government has suggested the position their regulatory agencies hold in the matter.
FTX Could Be One Of The Worse Corporate Failures In History
John Ray III also weighed in on the condition of things recently. The newly appointed CEO chosen to oversee the FTX bankruptcy proceedings was documented as saying that the state of the corporation’s affairs is the worst he’s seen in his forty years in the industry.
Ray III also added that he had zero faith in the accuracy of the company’s balance sheets. His comments surfaced after it was revealed that FTX had used corporate funds to purchase homes for its employees. In many instances, it seems that as the books are peeled back further, the story worsens.
CNL is committed to continuing updated reporting on all developing news related to the FTX bankruptcy proceedings and connected blockchain and crypto news.