The defunct crypto exchange FTX is the subject of an “active and ongoing” investigation, according to the Bahamas Attorney General (AG) and Minister of Legal Affairs Ryan Pinder.
Multi-agency Inquiry Into FTX
Pinder stated in a national address that was broadcast live on the Office of the Prime Minister’s Facebook page on November 27 that “civil and criminal authorities” are looking into the “affairs of FTX Digital Markets” and that Bahamian authorities are collaborating with “a number of specialists and experts” and will continue do so “as the need arises.”
He added that the Bahaman intelligence unit, the securities commission, and the financial crimes unit are working together in a bid to investigate the facts and circumstances regarding the FTX insolvency nightmare that has crippled thousands of investors. Those authorities will also be looking into any violations of Bahamian law that may have been committed by FTX.
Pinder also stated that the relevant Bahamian authorities will work with international regulatory and law enforcement organizations while attempting to hold accountable any businesses or people who were found to have broken any laws.
Addressing the effects of the FTX crash, Pinder remarked that such occurrences serve as a reminder of the important role robust international collaboration plays in the successful implementation of securities and other financial regulations all over the world.
On November 10, the Securities Commission of The Bahamas revoked the directors’ authority and suspended FTX Digital Markets’ (FDM) ability to conduct business.
New Safety Measures For Investors
Pinder said that the country’s regulatory body has implemented additional safety measures that had been approved by the Supreme Court but chose not to go into greater detail until the authorities are convinced that doing so would not endanger any element of the ongoing investigations.
Pinder also used the occasion to criticize FTX Trading Limited’s emergency motion from November 17, which accused the “Bahamian government” of “directing unauthorized access to the Debtors’ systems” following the start of Chapter 11 bankruptcy filings in the US.
The Bahamas has always encouraged and welcomed crypto companies to its shores. The Caribbean country is now feeling the effects in the aftermath of the FTX debacle. Aside from job losses occasioned by the debacle, the island’s economy is still recovering from the effects of the pandemic as well as the shocks of 2019’s Hurricane Dorian.
Pinder stated his expectations for “little contagion” beyond the digital asset arena both in the Bahamas and elsewhere, despite the “personal tragedies” connected to the fall of FTX.
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