The Bahamas Will Not Share Information on FTX Probe: Attorney General

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The failure of FTX shook the priorities of the Bahamian authorities. The country’s attorney general, Ryan Pinder, defeated the actions of the “nation of laws” against the collapsed cryptocurrency exchange.

In a 23-minute taped speech released on YouTube, Pinder reiterated that the country would not share information about the ongoing civil and criminal investigation against FTX for fear of compromising them.

FTX moved its headquarters to the Bahamas in 2021, and its founder and former CEO, Sam Bankman-Fried, managed all operations from the island. Valued at $34 billion in its last funding round, the crypto exchange collapsed within days and is now under bankruptcy proceedings. The authorities in the Bahamas have also opened an investigation against the exchange for any possible “criminal misconduct”.

“It is important for me to share this summary of what happened because, over the last few weeks, the basic facts have been hidden by guessing games and rumours,” Pinder stated. “We understand the tremendous interest in this story, but as a government, we immediately decided that it was most important not to engage in speculation or gossip, but instead to proceed methodically and deliberately in accordance with the exercise of due process and the rule of law.”

Messy Collapse

The Bahamas-registered unit of FTX also filed for bankruptcy in the United States. Meanwhile, the island’s financial regulator suspended its license and transferred the assets of local clients to government-controlled wallets with a court order.

Pinder further reiterated that the recently appointed FTX CEO, John Ray III, who is overseeing the bankruptcy process, “misrepresented” the actions of the Bahamian government. Ray earlier accused the Bahamian regulator of ordering “unauthorized” transactions. However, the Bahamian government claimed it was to protect the customers’ finances.

“We urge all authorities here and abroad, at a minimum, to exercise at least the same amount of prudence and restraint in their public comments as we do so as not to prejudice any of the ongoing proceedings,” Pinder added.

“It is extremely unfortunate that in the chapter 11 bankruptcy protection filings made in New York last week, that the new chief executive of FTX Trading Limited – not the Bahamas-based FTX Digital Markets, but a subsidiary company incorporated in Antigua and Barbuda – misrepresented the timely action taken by the Securities Commission and used inaccurate allegations presented in the transfer motion they filed to do so.”

Pinder’s attempt with the speech aims to justify the actions of the Bahamian authorities against collapsed FTX and also to ensure that the island is suitable for businesses and tourism.

Meanwhile, the 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 thus protecting local clients would be impossible.

The failure of FTX shook the priorities of the Bahamian authorities. The country’s attorney general, Ryan Pinder, defeated the actions of the “nation of laws” against the collapsed cryptocurrency exchange.

In a 23-minute taped speech released on YouTube, Pinder reiterated that the country would not share information about the ongoing civil and criminal investigation against FTX for fear of compromising them.

FTX moved its headquarters to the Bahamas in 2021, and its founder and former CEO, Sam Bankman-Fried, managed all operations from the island. Valued at $34 billion in its last funding round, the crypto exchange collapsed within days and is now under bankruptcy proceedings. The authorities in the Bahamas have also opened an investigation against the exchange for any possible “criminal misconduct”.

“It is important for me to share this summary of what happened because, over the last few weeks, the basic facts have been hidden by guessing games and rumours,” Pinder stated. “We understand the tremendous interest in this story, but as a government, we immediately decided that it was most important not to engage in speculation or gossip, but instead to proceed methodically and deliberately in accordance with the exercise of due process and the rule of law.”

Messy Collapse

The Bahamas-registered unit of FTX also filed for bankruptcy in the United States. Meanwhile, the island’s financial regulator suspended its license and transferred the assets of local clients to government-controlled wallets with a court order.

Pinder further reiterated that the recently appointed FTX CEO, John Ray III, who is overseeing the bankruptcy process, “misrepresented” the actions of the Bahamian government. Ray earlier accused the Bahamian regulator of ordering “unauthorized” transactions. However, the Bahamian government claimed it was to protect the customers’ finances.

“We urge all authorities here and abroad, at a minimum, to exercise at least the same amount of prudence and restraint in their public comments as we do so as not to prejudice any of the ongoing proceedings,” Pinder added.

“It is extremely unfortunate that in the chapter 11 bankruptcy protection filings made in New York last week, that the new chief executive of FTX Trading Limited – not the Bahamas-based FTX Digital Markets, but a subsidiary company incorporated in Antigua and Barbuda – misrepresented the timely action taken by the Securities Commission and used inaccurate allegations presented in the transfer motion they filed to do so.”

Pinder’s attempt with the speech aims to justify the actions of the Bahamian authorities against collapsed FTX and also to ensure that the island is suitable for businesses and tourism.

Meanwhile, the 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 thus protecting local clients would be impossible.

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