FTX New CEO John Ray III Criticized by Bahamas Government

FTX New CEO John Ray III Criticized by Bahamas Government
  • The battle to decide what to do with FTX’s assets has recently intensified.
  • FTX filed for bankruptcy on November 11.

The Bahamian government has criticized new FTX CEO John J. Ray III for his role in imposing restrictions on the corporation. The battle to decide what to do with FTX’s broken enterprise has recently intensified.

The Attorney General of the Bahamas, Ryan Pinder, said on November 27 that FTX CEO John Ray’s recent remarks made in the U.S. Bankruptcy proceedings were misrepresented conduct and “Regrettable.”

In a video address on Sunday, Pinder said:

“It is possible that the prospect of multimillion dollar legal and consultant fees is driving both their legal strategy and the intemperate statements. In any case, we urge prudence and accuracy in all future filings”.

Tug of War Continues

Since FTX filed for bankruptcy on November 11, a big controversy has emerged as a result of the Bahamian regulator’s attempt to seize the crypto assets of the local FTX exchange. The attorneys for cryptocurrency exchange FTX have cast doubt on claims that certain assets were mandated to be surrendered to the Bahamian government following the bankruptcy case.

The attorneys have also said that Sam Bankman-Fried’s “incessant and disruptive tweeting” has undermined the company’s restructuring efforts.

The spectacular failure of the FTX cryptocurrency exchange has prompted a swift response from authorities all across the world. The FTX outbreak has spread and affected the whole cryptocurrency market. In the wake of recent events, several prominent cryptocurrency lenders like BlockFi and Genesis are under immense liquidity crunch. Since then, managing liquidity has grown problematic.

The collapse of FTX has also put the Bahamas and its rapidly developing cryptocurrency sector under the international spotlight. The island country maintains its stance that it is doing all it can to attract cryptocurrency companies. 

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Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.