The Securities Commission of The Bahamas (SCB) released a statement on Monday to defend itself against the “material misstatements” made by the newly appointed Chief Executive of FTX, John Ray, who is overseeing the bankruptcy proceedings of the collapsed cryptocurrency exchange.

The Bahamas Regulator Challenges FTX's CEO Ray

The statements came in response to Ray’s challenge against calculating the digital assets held by the Bahamas regulator, which belonged to FTX customers. The SCB last week revealed that it is holding $3.5 billion in digital assets that it obtained from the local entity of the company with a court order. It said that the challenge to the calculation of digital assets was based on incomplete information.

Additionally, the Bahamas regulator challenged Ray’s allegations on its order to mint $300 million worth of FTT tokens and the SCB-held tokens of FTX being stolen.

“The US Debtors’ continued lack of diligence when making [a] public statement concerning the Commission is disappointing, and reflects a cavalier attitude towards the truth and towards The Bahamas that has been displayed by the current officers of the Chapter 11 Debtors from the date of their appointment by Sam Bankman-Fried,” the SCB stated.

A Battle to Control FTX’s Funds

The FTX fiasco exploded last month, leading to the bankruptcy filing of the crypto exchange and over 130 of its affiliates . Moreover, the exchange was hacked a day after the bankruptcy filing, leading to the theft of at least $372 million in cryptocurrencies. The Bahamas regulator cited the cyberattack and other ill practices by FTX leadership to get a court order to get hold of the FTX tokens held by the locally registered entity, which also filed for bankruptcy in the US.

Ray, who replaced Bankman-Fried as FTX's CEO, questioned the Bahamas regulator’s move to obtain the cryptocurrencies last month. On November 30, a group of debtors of FTX and its affiliates sought the return of the cryptocurrencies held by the Bahamas regulator, as the digital assets were obtained after the commencement of the bankruptcy proceedings.

“The FTX Debtors have informed the Bahamas Commission that none of Mr Bankman-Fried, Mr Wang or the Bahamas Commission had a right to take cryptocurrency of the FTX Debtors,” the group stated. However, the Bahamas regulator earlier said that it will only return the funds with a court order.