Bahamas Attorney General lauds Govt efforts in tackling FTX crisis, critiques new CEO’s statements

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Key Takeaways

  • The Attorney General stated that FTX’s new CEO’s statements were “regrettable” and misrepresented actions taken by the authorities.
  • Pinder lauded the Bahamas’ government’s swift response to the FTX crisis.

On Sunday, Bahamas Attorney General Ryan Pinder said that FTX remains the subject of “an active and ongoing investigation” by Bahamian authorities. “It is a very complex investigation,” he said, adding that the probe involved both civil and criminal authorities.

In its 23-minute pre-taped speech, Pinder also lauded the Bahamas’ government’s swiftness in responding to the FTX crisis.” The Securities Commission of The Bahamas moved swiftly by suspending FTX Digital Markets’ license and also appointing provisional liquidators, and later, securing FTX Digital Markets’ assets to be held on behalf of and for the benefit and restitution of clients and creditors of FTX,” he said.

He further added that the Bahamas Securities Commission, the police’s Financial Crimes Unit, and the Financial Intelligence Unit would “continue to investigate the facts, circumstances regarding FTX’s insolvency crisis and any potential violations of Bahamian law.”

He also didn’t shy away from launching a scathing attack on John J ray III, who is FTX’s restructuring agent and new CEO. Pinder stated that Ray’s recent statements made in US bankruptcy proceedings were “regrettable” and misrepresented actions taken by the nation’s securities watchdog. In the filing, Ray alleged that the Bahamas’ government ordered “unauthorized” transactions. The commission, however, claimed that these actions were done to protect FTX’s funds.

It is extremely regrettable that in chapter 11 filings for bankruptcy protection made in New York that the new CEO of FTX Trading Limited – not the Bahamas-based FTX Digital Markets, but an affiliate company incorporated in Antigua and Barbuda – misrepresented the timely action taken by the Securities Commission and used inaccurate allegations lodged in the transfer motion they had filed to do so.”

Earlier this month, the Royal Bahamas Police Force revealed that Bahamas securities regulator and financial investigators are investigating potential misconduct over the collapse of cryptocurrency exchange FTX. The move by Bahamas authorities came after FTX filed for bankruptcy after traders rushed to withdraw $6 billion from the platform in under 72 hours and rival exchange Binance abandoned a proposed acquisition deal.

According to reports, the FTX’s sudden implosion has left a trail of unemployment in the Bahamas, where FTX was located. The local Bahamians who were hired by FTX in areas including logistics and event planning are now left jobless.  Reportedly, FTX, at the time operated by SBF, his parents, and other high-level executives of the exchange, purchased around 19 properties in the Bahamas over the last two years.

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Saniya Raahath
Saniya Raahath

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