Bahamas’ Attorney General Defends The Country’s Action After FTX’s Collapse

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  • Bahamas’ attorney General reassures investors that the country remains a safe place to invest despite the ill-fated FTX collapse.
  • The government has been criticized for playing a role in the implosion, which the AG denies.
  • The Bahamas has attracted several digital asset firms looking to set up shop in the Caribbean.

Weeks after FTX’s collapse, the blame game continues with some pointing accusing fingers at the Bahamas, but its Attorney General has vehemently denied all allegations of wrongdoing.

Ryan Pinder, Bahamas’ Attorney general, has rebuffed claims that the country was complicit in the events leading to the collapse of FTX. Pinder disclosed in a 23-minute speech where he attempted to put the record straight and explain in detail the government’s steps after the collapse.

“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,” said Pinder.

Pinder disclosed that the country’s securities watchdog and financial regulators had opened investigations against FTX for violating Bahamian laws. Aside from criminal investigations, civil authorities are also scrutinizing the actions taken by the principal members of the embattled digital asset exchange.

Days after the collapse, the Securities Commission of The Bahamas suspended the firm’s license to operate in the country and ordered all remaining assets to be transferred to a digital wallet operated by the agency for safe custody.

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“These events remind us of the lessons learned from securities and other financial regulations about the need for strong cross-border cooperation,” said Pinder. “The public worldwide will be best served by a strong international regulatory cooperation.”

Being careful not to impede investigations

Pinder revealed that he would be unable to disclose more details of the government’s actions against the commission due to the ongoing investigations. The AG added that investigating authorities in other jurisdictions should exercise “restraint in their public commentary” to avoid prejudice to the proceeding.

He poked holes in the Chapter 11 bankruptcy filings by FTX’s new CEO that the Bahamian government directed unauthorized access to the Debtors’ system. Pinder referred to the claims as “extremely regrettable” for downplaying the timely actions of the securities watchdog after the collapse.

Pinder added that an attempt to blame the entire collapse on the Bahamas because FTX is domiciled on the island “would be a gross oversimplification of reality.” The AG seized the chance to reiterate that the Bahamas remains a safe place to invest and do business, but the FTX debacle has, without a doubt, dampened investors’ enthusiasm.

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