According to Ryan Pinder, the country’s attorney general, the Bahamas “is a nation of laws,” justifying the country’s actions after the FTX cryptocurrency exchange went bankrupt.
Senator and Minister of Legal Affairs Ryan Pinder used a 23-minute pre-recorded speech to explain what happened with FTX, how the government responded, and reassure potential investors and visitors that the Bahamas is still a secure location to do business.
Sam Bankman-Fried, FTX’s founder, liked and reposted a tweet from the Bahamas Prime Minister’s Office on the address. In the past year, Bankman-Fried has relocated FTX’s headquarters to the Bahamas.
Brokerage firm FTX Digital Markets had its license suspended “swiftly” by the Securities Commission of the Bahamas, which also appointed provisional liquidators and later secured the firm’s assets “to be held on behalf of and for the benefit and restitution of clients and creditors of FTX,” as Pinder put it.
Importantly, with its “copacetic regulatory touch,” the Bahamas had become a land for cryptocurrency entrepreneurs. However, the collapse of FTX has sent waves through the region. Pinder believes that “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.”
The Bahamas Won’t Spill Details Involving FTX Anymore
Pinder reaffirmed that the Bahamas would reveal no more details about the criminal and civil investigations into FTX out of concern for their integrity.
Pinder spent most of his talk defending the sufficiency of the Bahamas’ regulatory system to monitor the cryptocurrency industry. He asserted that the Securities Commission’s rapid action was unprecedented and that there are now no international guidelines for crypto regulation.
“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.”
Notably, FTX’s former CEO resigned and the company filed for bankruptcy last month. Its demise was precipitated by the instability of Alameda Research, a trading firm with ties to the exchange.