Regrettably, the Securities Commission of TheBahamas must once again correct key misstatements made by Mr. John J. Ray III, the representative ofthe U.S. FTX debtors, which do not appear to be concerned with facts but rather, appear intended only to make headlines and advance questionable agendas.

To be clear, the Securities Commission of The Bahamas was the first regulator in the world to take strong,decisive action to protect the customers and creditors of FTX – regardless of where they may be located.Every action taken by the Securities Commission of The Bahamas was in strict accordance with ourcountry’s legislation and with orders made by the Supreme Court of The Bahamas. These actions includedsecuring the transfer of potentially commingled digital assets of FTX Digital Markets Ltd. and affiliates toa secure location under the authority of an Order issued by the Supreme Court of The Bahamas. TheCommission holds those assets as trustee only (under Bahamian Law), and they will be ultimatelydistributed, to creditors and clients of FTX, wherever they may be located, in accordance with the court’sdirection.

Mr. Ray has referred to redacted email correspondence by and between Mr. Bankman-Fried andBahamian officials. Those redactions were designed to create a false impression of communicationsbetween Mr. Bankman-Fried and the Commission. These redactions are disturbing as Mr. Ray is awarethat the full email reveals Mr. Bankman-Fried’s acknowledgement that he had “not briefed the SecuritiesCommission.” The Commission has previously addressed improper distributions to Bahamian citizens inits statement dated 12 November 2022. The Commission reaffirms its prior statement and notes that tothe extent improper distributions were made to Bahamian citizens, such distributions will be subject tothe appropriate claw back actions under the law.

The Commission also finds it disturbing that, either deliberately or through ignorance, Mr. Ray’s filingsand communications continue to wrongfully confuse as one, the actions of the Government of TheBahamas, the Securities Commission of The Bahamas and the Court Appointed/Court Supervised JointProvisional Liquidators.

The Securities Commission continues to conduct a comprehensive and diligent investigation into thecauses of FTX’s failure, working in cooperation with law enforcement and regulatory authorities both inThe Bahamas and other jurisdictions. The Securities Commission will make all appropriate findings andrecommendations, in the appropriate forum, at the conclusion of its investigation. Persons who are foundto have engaged in misconduct will be held accountable in accordance with Bahamian law. Unfortunately,it has been necessary for the Securities Commission to make a request to Mr. Ray’s representatives to notobstruct that investigation. Mr. Ray has not once reached out to the Securities Commission to discuss anyof his concerns before airing them publicly. He, however, has been informed, by letter dated 7 December2022 to his counsel, that –

“... to the extent the Commission is able to assist in the efficient and mutually respectful conduct of theseveral pending proceedings without impairing the conduct or confidentiality of its ongoing regulatoryinvestigation, including by participating in a meeting with your clients [i.e. FTX US Debtors represented byMr. John J. Ray III], the Joint Provisional Liquidators and/or their respective counsel, they [i.e. theCommission] are prepared to do so. An appropriate and necessary part of any arrangement reached duringsuch meeting, would be your clients’ assurance that they will take no further action to interfere with theCommission’s investigation and other regulatory measures.”(Emphasis Added).

Mr. Ray has not responded to the Commission to date.