Criminal Investigation into FTX Underway in The Bahamas – Attorney General Defends Response

Defending the “integrity” of its jurisdiction and the nation’s regulation of digital assets following the FTX crash, Bahamas Attorney-General Ryan Pinder said the claims that FTX came into the country just because it is a badly-regulated jurisdiction are shocking and ignorant.

In his 23-minute long pre-recorded speech that came late on Sunday, Pinder pointed to the Securities Commission of the Bahamas taking a leading role as statutory regulator for the failed crypto-exchange and other companies in the digital assets space.

The collapsed cryptocurrency exchange FTX remains under an active and continuing inquiry by the authorities of The Bahamas, said Pinder while commending The Bahamas regulatory regime for its quick response to the crisis, including suspending FTXs failed crypto exchange’s license after the crash.

The Bahamas has encouraged cryptocurrency companies to set their base in the country to help their economy. Now, after being rocked by the now-bankrupt exchange FTX’s downfall, it seeks to assure investors and tourists that it is a safe place for both to visit and conduct business.

For most of his nationally televised speech, Pinder addressed the international criticisms over the country’s digital asset regulations while also attacking the erroneous claims made over the collapse of FTX.

“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,” said Pinder, adding that while they “understand the enormous interest in this story,” they won’t be engaging with “speculation or gossip but instead to proceed methodically and deliberately in accordance with the exercise of due process and the rule of law.”

He then reiterated several times that The Bahamas would not be sharing further information about ongoing civil and criminal investigations for fear of compromising them.

Sam Bankman-Fried (SBF), the founder of FTX, liked and retweeted the Office of the Prime Minister of The Bahamas’ tweet on Pinder’s speech discussing the government’s response and position on the FTX collapse.

The Bahamas’ Authorities Reacted “Swiftly”

As the FTX bankruptcy proceedings continue to shake up the cryptocurrency markets, authorities in The Bahamas, where the exchange was based, are investigating the activities of the collapsing company, according to Pinder, who is also a Senator and Legal Minister. During his remarks, Pinder also revealed that Alameda Research does not fall within the regulator’s jurisdiction in The Bahamas.

“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 said

In the majority of the pre-taped address, the country’s attorney general focused on the argument that The Bahamas’ regulatory regime is adequate for oversight of cryptocurrency businesses. Also, the Cabinet would not make any major changes to its regulatory structure.

The Securities Commission of The Bahamas moved quickly, suspending FTX’s license and appointing interim liquidators, and subsequently, secured assets from FTX Digital Markets to be held in trust for the benefit of the clients and creditors of FTX said the country’s, Attorney General.

Pinder also said the Bahamas was the first regulator worldwide to act against FTX following disclosures the centralized exchange had allegedly misspent billions in customer funds in an effort to prop up its subsidiary, Alameda Research. Pinder called the allegations extremely regrettable for an erroneous representation of the timely actions taken by the SEC while defending all steps taken so far by the country’s regulators.

He also expressed frustration with the inaccurate allegations made by FTX’s new CEO John Rae III, who said that he had credible evidence proving the Bahamas Government had directed unauthorized access into the FTX systems and aided in the removal of the digital assets.

For those oblivious to the matter, Rae said he had credible evidence proving that the Bahamas Government and FTX were in cahoots for removing FTX’s user funds.

However, Pinder believes that BSC moved remarkably fast and that the Bahamas government is not too happy that people are accusing the island of being responsible for FTX Digital Market’s failure.

Just a “Turbulent” Crypto Period

In his formal remarks regarding FTXs development, Pinder dismissed claims FTX came to The Bahamas because it did not want regulatory oversight and decried the slack information speculating about the issue.

“Any attempt to lay the entirety of this debacle at the feet of the Bahamas because FTX is headquartered here would be a gross oversimplification of reality,” he said.

Pinder then continued that the government was shocked by the ignorance of those claiming FTX came to the Bahamas because FTX did not want to be subjected to regulatory supervision. Indeed, there are many countries around the world where no legislation or regulatory power is placed on crypto, and the Bahamas is not one of them.

The Senator emphasized that the Bahamas has “a principled, fair, comprehensive, and ethical regulatory regime” and place and people can be certain that “we will act quickly and decisively to enforce it, if and when our laws and regulations are breached.”

Despite the country’s reputation as a “crypto paradise” and haven for crypto schemes, Pinder argued that “The Bahamas is a place of laws.”

As for the nation’s digital asset industry, Pinder said, the Bahamas will emerge from this situation “in even higher esteem.” He also stated that government officials believe it is just a “turbulent” period for the cryptocurrency market on a global basis.

“The downfall of a single Bahamian company in no way threatens a bright future for The Bahamas. Quite the opposite,” he added.