SCB Denies FTX’s Claim of $300M FTT Token Minting in 2022

• On December 12th and 13th, 2022, John J Ray III, CEO of FTX and representative of the Chapter 11 Debtors in the U.S., made a statement claiming the Securities Commission of the Bahamas (SCB) had instructed FTX to mint $300 million in new FTT tokens in 2022.
• On January 2, 2023, the SCB released a statement denying these allegations and claiming that they were promoting mistrust in public institutions in the Bahamas.
• The SCB also addressed how it took possession of digital assets under the custody of FTX Digital Markets Ltd (FTXDM) and accused Mr. John of not contacting the SCB to address his concerns.

On December 12th and 13th, 2022, John J Ray III, CEO of FTX and representative of the Chapter 11 Debtors in the U.S., made a startling claim. In court filings, Mr. John claimed that the Securities Commission of the Bahamas (SCB) had instructed FTX to mint $300 million in new FTT tokens in 2022. This statement was made without evidence before the United States House Financial Services Committee and received widespread international media coverage. The Chapter 11 Debtors also alleged that digital assets controlled by the SCB in trust for the benefit of FTX customers and creditors were stolen, without providing any substantiating evidence.

On January 2, 2023, the SCB released a statement denying these allegations and claiming that they were promoting mistrust in public institutions in the Bahamas. The SCB also addressed how it took possession of digital assets under the custody of FTX Digital Markets Ltd (FTXDM) and accused Mr. John of not contacting the SCB to address his concerns. The SCB sent a letter to Mr. John on December 7th, 2022 offering cooperation with the Chapter 11 Debtors, but has not received a response.

The SCB also noted that the false and misleading statements made by Mr. John could have a negative effect on the reputation of The Bahamas in the global financial system. The SCB clarified that the digital assets under the control of the SCB are not stolen, but are instead being used to protect the interests of FTX customers and creditors. The SCB also noted that it has implemented appropriate measures to ensure the safety of customer funds and that it has not authorized any minting of FTT tokens.

The SCB concluded its statement by stressing that it is committed to protecting the integrity of the financial system in The Bahamas. The SCB also warned that it will take necessary action to protect its reputation and that of The Bahamas if it becomes necessary.