© Reuters
By Laura Sanchez
Investing.com – The cryptocurrency sector was flat on Friday – with trading below $17,000 and trading at $1,200 – as details of the controversial FTX bankruptcy continue to emerge.
According to an emergency document filed by FTX, regulators in the Bahamas have ordered the now former CEO of the world’s second-largest stock exchange, Sam Bankman-Fried, to gain “unauthorized access” to FTX’s systems in order to obtain assets belonging to the company after its bankruptcy filing.
According to the filing, Bankman-Fried transferred those assets to the custody of the Bahamian government. She cites an interview published by Vox on Wednesday where Bankman-Fried expresses serious disdain for regulators.
These allegations were made by FTX in a petition filed with the Delaware bankruptcy court. In the motion, FTX said the alleged conduct “seriously calls into question” Bahamian regulators’ claim to be recognized as bankruptcy liquidators.
″There was a hacking investigation on Sunday, November 13, Mr. Bankman-Fried and FTX co-founder Gary Wang testified in recorded and verified texts that “Bahamian regulators” ordered that certain post- requisition of the debtor’s assets were made by Mr. Wang and Mr. Bankman-Fried (who, according to the debtors, were both effectively in the custody of Bahamian authorities) and that these assets were “held in FireBlocks under the control of the Bahamian government”, indicates the document, taken up by CNBC.
“The Debtors therefore have credible evidence that the Government of the Bahamas is responsible for the unauthorized access to the Debtors’ systems for the purpose of obtaining the Debtors’ digital assets, which took place after the commencement of these cases. JPL’s appointment and recognition of the Chapter 15 case are therefore in serious question,” the filing concludes.