The FTX debacle shook the priorities of the Bahamian authorities. The country’s attorney general, Ryan Pinder, has defeated the actions of the “nation of laws” against the collapsed cryptocurrency exchange.
In a 23-minute pre-tapped speech released on YouTube, Pinder reiterated that the country would not share information on 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, ran all operations from the island. Valued at $34 billion in its last funding round, the crypto exchange collapsed within days and the now under bankruptcy proceedings. The authorities in the Bahamas also opened an investigation against the exchange for any possible “criminal misconduct.”
“It is important for me to share this summary of what took place, because, over the last few weeks, the basic facts have been obscured by guessing games and rumors,” Pinder stated. “We understand the enormous interest in this story, but as a government, we decided right away that what was most important was not to engage with speculation or gossip, but instead to proceed methodically and deliberately in accordance with the exercise of due process and the rule of law.”
A Messy Collapse
The Bahamas-registered entity 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 customers to government-controlled wallets with a court order.
Pinder further reiterated that the newly appointed FTX CEO, John Ray III, who is overseeing the bankruptcy proceedings, “misrepresented” the actions of the Bahamas government. Ray earlier accused the Bahamas regulator of ordering “unauthorized” transactions. However, the Bahamas government maintained that it was for safeguarding the clients’ funds.
“We urge all authorities here and abroad, at a minimum, to exercise at least the same amount of prudence and restraint in their public commentary as we do so as not to prejudice any of the proceedings that are ongoing,” Pinder added.
“It is extremely regrettable that in chapter 11 filings for bankruptcy protection made in New York last week that the new chief executive of FTX Trading Limited – not the…
