WASHINGTON – The Bahamian government has blasted the person in charge of restructuring crypto exchange FTX, the latest salvo in an escalating fight over what remains of Mr Sam Bankman-Fried’s crumbled empire.

Bahamas Attorney-General Ryan Pinder on Sunday said that recent statements made in US bankruptcy proceedings by Mr John Ray III were “regrettable” and misrepresented actions taken by the nation’s securities watchdog. Mr Ray, a turnaround and restructuring expert, is also acting as FTX’s chief executive officer.

“It is possible that the prospect of multimillion-dollar legal and consultant fees is driving both their legal strategy and the intemperate statements,” Mr Pinder, who is also a senator, said in a video address.

“In any case, we urge prudence and accuracy in all future filings,” he added.

Tensions have been rising after more than 100 FTX companies filed for bankruptcy in the United States on Nov 11. A major source of conflict has been the Bahamas regulator’s move to then seize the digital assets of the local FTX unit.

Lawyers for the crypto exchange have accused Mr Bankman-Fried of undermining reorganisation efforts with “incessant and disruptive tweeting”. They have also raised the suggestion that some FTX assets were ordered to be transferred to the Bahamian government after the bankruptcy filing.

FTX’s downfall has rippled across the crypto markets and cast a spotlight on the Bahamas and its burgeoning crypto industry. The island nation has staunchly defended its effort to attract digital asset companies and insisted that it will not stop doing so.

“We do not apologise for our ambition for Bahamians to be at the forefront of this exciting innovative sector,” Mr Pinder said. “The Bahamas stands behind its decision to regulate digital assets and related businesses. We stand behind the quality of the regulations that exist.” BLOOMBERG