The FTX debacle has shaken the priorities of the Bahamian authorities. The country’s Attorney General, Ryan Pinder, has defeated the “nation of laws” actions against the collapse of the cryptocurrency exchange.
In a 23-minute pre-recorded speech posted on YouTube, Pinder reiterated that the country would not share information about the ongoing civil and criminal investigation against FTX for fear of compromising it.
FTX moved its headquarters to the Bahamas in 2021, and its founder and former CEO, Sam Bankman-Fried, ran all operations from the island. Valued at $34 billion in its last funding round, the crypto exchange collapsed within days and bankruptcy proceedings are now underway. Bahamian authorities have also opened an investigation against the exchange for possible “criminal misconduct”.
“It’s important for me to share this summary of what happened, because over the past few weeks the basic facts have been obscured by guesswork and rumour,” Pinder said. “We understand the enormous interest in this story, but as a government we decided right away that the most important thing was not to engage in speculation or gossip, but rather to proceed methodically and deliberately. in accordance with the exercise of due process and the rule of law.”
A messy collapse
The Bahamian registered entity of FTX has also filed for bankruptcy in the USA. Meanwhile, the island’s financial regulator suspended its license and transferred local client assets to government-controlled wallets with a court order.
Pinder further reiterated that new FTX CEO John Ray III, who is overseeing the bankruptcy proceedings, has “misrepresented” the actions of the Bahamian government. Ray previously accused the Bahamian regulator of ordering “unauthorized” transactions. However, the Bahamian government maintained that this was to protect customer funds.
“We urge all authorities here and abroad, at a minimum, to exercise at least the same degree of caution and restraint in their public comments as we do so as not to prejudice any of the ongoing proceedings. “, added Pinder.
“It is extremely unfortunate that in Chapter 11 bankruptcy filings filed in New York last week, the new Managing Director of FTX Trading Limited – not Bahamas-based FTX Digital Markets, but an Antigua-incorporated affiliate -and Barbuda – misrepresented the timely actions taken by the Securities Commission and used inaccurate allegations filed in the transfer petition they filed to do so.”
Pinder’s attempt with the speech is intended to vindicate the actions of Bahamian authorities against the collapse of FTX and also to ensure the island is suitable for business and tourism.
Meanwhile, regulators of Cyprus and Australia also suspended the license of local FTX entities, while the Monetary Authority of Singapore clarified that it does not regulate FTX and therefore the protection of local customers would be impossible.
The FTX debacle has shaken the priorities of the Bahamian authorities. The country’s Attorney General, Ryan Pinder, has defeated the “nation of laws” actions against the collapse of the cryptocurrency exchange.
In a 23-minute pre-recorded speech posted on YouTube, Pinder reiterated that the country would not share information about the ongoing civil and criminal investigation against FTX for fear of compromising it.
FTX moved its headquarters to the Bahamas in 2021, and its founder and former CEO, Sam Bankman-Fried, ran all operations from the island. Valued at $34 billion in its last funding round, the crypto exchange collapsed within days and bankruptcy proceedings are now underway. Bahamian authorities have also opened an investigation against the exchange for possible “criminal misconduct”.
“It’s important for me to share this summary of what happened, because over the past few weeks the basic facts have been obscured by guesswork and rumour,” Pinder said. “We understand the enormous interest in this story, but as a government we decided right away that the most important thing was not to engage in speculation or gossip, but rather to proceed methodically and deliberately. in accordance with the exercise of due process and the rule of law.”
A messy collapse
The Bahamian registered entity of FTX has also filed for bankruptcy in the USA. Meanwhile, the island’s financial regulator suspended its license and transferred local client assets to government-controlled wallets with a court order.
Pinder further reiterated that new FTX CEO John Ray III, who is overseeing the bankruptcy proceedings, has “misrepresented” the actions of the Bahamian government. Ray previously accused the Bahamian regulator of ordering “unauthorized” transactions. However, the Bahamian government maintained that this was to protect customer funds.
“We urge all authorities here and abroad, at a minimum, to exercise at least the same degree of caution and restraint in their public comments as we do so as not to prejudice any of the ongoing proceedings. “, added Pinder.
“It is extremely unfortunate that in Chapter 11 bankruptcy filings filed in New York last week, the new Managing Director of FTX Trading Limited – not Bahamas-based FTX Digital Markets, but an Antigua-incorporated affiliate -and Barbuda – misrepresented the timely actions taken by the Securities Commission and used inaccurate allegations filed in the transfer petition they filed to do so.”
Pinder’s attempt with the speech is intended to vindicate the actions of Bahamian authorities against the collapse of FTX and also to ensure the island is suitable for business and tourism.
Meanwhile, regulators of Cyprus and Australia also suspended the license of local FTX entities, while the Monetary Authority of Singapore clarified that it does not regulate FTX and therefore the protection of local customers would be impossible.