FTX to remain in scrutiny: Bahamian AG
Authorities from the Caribbean nation are currently looking into the defunct cryptocurrency exchange FTX, according to the Bahamas Attorney General (AG) and Minister of Legal Affairs Ryan Pinder. Pinder stated in a national address that was broadcast live on the Office of the Prime Minister’s Facebook page on November 27 that FTX Digital Markets’ operations are being investigated by both civil and penal authorities, and that Bahamian authorities are collaborating with some experts and analysts and will do so going forward as needed.
He also stated that the relevant Bahamian officials will work with international regulatory and law enforcement organizations while attempting to hold liable any businesses or people who were found to have broken any laws. On Nov. 10, the Securities Commission of The Bahamas halted the operation of FTX Digital Markets (FDM) and removed its directors’ authority.
Pinder went on to state that additional precautionary measures adopted by the nation’s regulatory body had been approved by the Supreme Court, but they chose not to go into any detail until they were certain that doing so would not endanger any aspect of the current investigations. Pinder also used the opportunity to criticize the emergency motion filed by FTX Trading Limited in which the company accused the Bahamian government of allowing illegal access to the Debtors’ networks following the start of Chapter 11 bankruptcy filings in the US.
The charges, according to them, were “very disappointing” since they misrepresented the rapid response taken by the Securities Commission. He also defended all of the actions taken so far by the nation’s regulator.
The Bahamas welcomed cryptocurrency entrepreneurs to the island nation to boost its economy, but after FTX’s crash, it has been rattled. Additionally, Hurricane Dorian in 2019 and the COVID-19 epidemic that began in 2020 severely damaged its largely dependent tourism industry. Numerous jobs in the relatively small country have been lost along with FTX. Nevertheless, Pinder stated his opinion that, despite the “personal tragedies” connected to FTX’s demise, he anticipates little spillover outside the digital asset sector, both in the Bahamas and globally.
About Standard & Poor’s ratings for The Bahamas, which projected a stable outlook and highlighted the performance of the tourism industry, he said: “Standards and poor” has anticipated a stable outlook for our economic growth clenching in part on the premise that there will be no substantial adverse consequences on the Bahamas from the global collapse of FTX.