Sam Bankman-Fried, Founder and Chief Executive Officer of FTX Cryptocurrency Derivatives Exchange, speaks during an interview on an episode of Bloomberg Wealth with David Rubenstein in New York, U.S., on Wednesday, August 17, 2022.
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FTX said Thursday in a bomb emergency court that it had credible evidence that Bahamian regulators ordered former CEO Sam Bankman-Fried to gain “unauthorized access” to FTX systems to obtain the company’s digital assets after it had filed for Chapter 11 bankruptcy protection.
The filing states that Bankman-Fried placed those assets in the custody of the Bahamian government. She cites an interview published by Vox on Wednesday in which Bankman-Fried seriously disregards regulators.
“F—Regulators,” he said in the interview. “They make things worse. They don’t protect customers at all.”
“You know what maybe my biggest single fuck was?” he asked. “Chapter 11.”
In the filing, which was filed with the US bankruptcy court in Delaware, FTX said the alleged conduct “seriously challenges” a request by Bahamian regulators to be recognized as bankruptcy liquidators.
“[I]In connection with the investigation of a hack on Sunday 13th Bankman-Roast Duck [FTX co-founder Gary] Wang, in recorded and verified texts, stated that the “Bahamian Regulators” ordered certain transfers of the debtor’s assets following Mr. Wang’s and Mr. Bankman-Fried (both of which the debtors know were effectively in the custody of the Bahamian authorities) and that such assets “were held on FireBlocks under the control of the Bahamian government,” the filing states.
“The Debtors thus have credible evidence that the Bahamian government is responsible for directing unauthorized access to the Debtors’ systems in order to obtain Debtors’ digital assets — which occurred after these cases began. The appointment of the JPLs and recognition of the Chapter 15 case are therefore seriously in question,” the filing reads.
Bankman-Fried was not immediately available for comment. The law firms Landis Rath & Cobb and Sullivan & Cromwell, which represent FTX, did not respond to requests for comment. CNBC did not immediately receive a response to an email sent to the Securities Commission of the Bahamas.