On November 27, Bahamas Attorney General and Minister of Legal Affairs Ryan Pinder, released a national statement that seems to justify the actions of Bahamian authorities in the FTX collapse. The 23-minute video made a strong argument that the Bahamas is a nation of law.
The video also said that the insolvency experienced by the FTX group of companies is not unique to it but has been experienced in all business sectors. He called it a business failure as a result of questionable corporate governance.
“… a case of a very large business failure as a result of questionable internal management practices and corporate governance.”
Pinder, (2022)
Pinder also discussed how these questionable business practices came to light when Coindesk released an article exposing FTX’s assets, which were largely in its own FTT native token. He further discussed how Binance’s decision to liquidate its FTT holding resulted in people quickly withdrawing their digital assets from FTX.
Bahamas is a Nation Governed by Laws
After narrating the events that led to the collapse of FTX, the attorney general’s reiterated that the Bahamas is a country governed by laws and is a pioneer in crypto regulations.
In December 2020, The Digital Assets and Registered Exchanges (DARE) Bill was passed to enable the registration of digital assets businesses and associated services.
FTX was incorporated in the Bahamas as a digital assets business under the DARE Act in July 2021
In the Sept 2021, The Bahamas Securities and Exchange Commission (SEC) approved FTX’s License to Operate. Pinder also noted that FTX contributed to the country by hiring local employees and by donating to charities. These are actions from a company that wants to be seen as a contributor to the community.
The Bahamian Attorney General also took the opportunity to urge all authorities to exercise prudence and restraint in all public commentaries. He also said that the new FTX Trading Ltd CEO misrepresented the timely action taken by the Bahamas SEC and used inaccurate allegations lodged in the transfer motion filings.
There was a report that Sam Bankman-Fried, former FTX CEO, was told by Bahamian regulators to transfer digital assets to the government after the company has already filed for bankruptcy.
Pinder gave assurance that authorities will continue doing their jobs but further details are withheld so as not to jeopardize any aspect of the ongoing investigation.
“There is active an active and ongoing investigation of the affairs of digital markets involving both civil and criminal authorities”. He further noted that “We will as we always do cooperate with International Regulatory and enforcement agencies”
FTX Investors Just Want Their Assets Back
The FTX collapse is dominating crypto headlines for November, and there is no sign that this will change soon. All parties involved are being scrutinized for their part in the mess. Authorities are also in the spotlight for their involvement or lack of it.
The Bahamian attorney general did what most people in authority would probably do. He defended his country’s reputation by denying any wrongdoing and highlighting any positive action they have taken regarding the FTX case.
But this is just all smoke and mirror for people who have lost money in the FTX collapse. While investors would like the truth to come out, they are more concerned with the possibility of getting their assets back.
Image from Pixabay
