NASSAU, BAHAMAS — The Securities Commission yesterday revealed that it was investigating ArawakX amid solvency concerns and had suspended its registration at the end of August.
Meanwhile, ArawakX executives accused the regulator of seeking to interfere in its ongoing court battle with the Bank of The Bahamas (BOB).
D’Arcy Rahming, the company’s Chairman and CEO, asserted in a letter to stakeholders that the company’s reputation has taken a “huge hit” and further claimed he has substantial evidence of a conspiracy to take control of the crowdfunding platform.
Rahming called for an investigation into the activities of the SCB relative to his company.
The SCB released a statement addressing Rahming’s allegations, revealing it had launched its own investigation into the solvency of MDollaz Ltd trading as the crowdfunding platform ArawakX.
“The Commission finds it most unfortunate that, instead of addressing the Commission’s substantive and very serious issues, Mr Rahming has chosen to make inflammatory misrepresentations and outright fabrications of the Commission’s concerns in a public forum,” the regulator said.
“The Commission has exercised both patience and restraint in dealing with MDollaz trading as ArawakX, and we continue to exercise our professionalism in this regard. However, the Commission will not tolerate wild, misleading and potentially libelous accusations of the nature made in the referenced communication.”
It added: “The Commission seeks only to resolve its regulatory concerns with the principals of MDollaz trading as ArawakX in the interest of the investing public. As always, the Commission remains committed to its professionalism and hopeful that these matters can come to a productive end.”
In his letter to stakeholders, Rahming noted that the company is in the process of filing court actions against the leadership of the SCB for attempting to interfere with its case against the Bank of the Bahamas, scheduled for late October 2023.
The company confirmed back in June that multiple accounts it held with Bank of The Bahamas had been unfrozen after a dispute with one-time Colina Insurance Company president James Campbell, one of its founding financiers.
Rahming asserted that formal and informal impositions by the SCB were intended to starve the company and drive it into voluntary insolvency, leaving the company unable to help the 28 companies needing millions of dollars of financing.