In the Bahamas, FTX is Under Criminal and Civil Investigation

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Last Updated on November 28, 2022 by Bitfinsider

A national statement on FTX’s downfall was released by Ryan Pinder, Attorney General and Minister of Legal Affairs for the Bahamas. Attorney General Pinder disclosed that both a civil and a criminal inquiry were being conducted against the Bahamas exchange. Even though he withheld identities, he said that they were working with numerous specialists and experts on the probe.

In addition, he underlined that while FTX was a legitimate business company in the Bahamas, Alameda Research lacked authorization to conduct business there. Alameda would also be subject to local regulations, he added, if it is discovered that the corporation “committed any improprieties”.

He acknowledged the Bahamas Securities and Exchanges Commission’s (SEC) swift response and praised it, saying that it had “secured the assets of FTX Digital Markets”. After receiving approval from the Supreme Court, the Attorney General claimed that this was done to protect clients and creditors.

Additionally, AG Pinder said that a number of preventative actions implemented by the nation’s regulatory body had been sanctioned by the Supreme Court. These precautions won’t be made public though, until the regulator is “assured” the ongoing probe won’t be jeopardized. In order to avoid jeopardizing any of the ongoing cases, the Attorney General continued, saying: “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.”

Additionally, AG Pinder discussed the negative impression that FTX’s collapse had given the nation. He said it would be a “gross oversimplification of reality” to place “the totality of this catastrophe at the feet of the Bahamas” just because that is where FTX is based. In a statement highlighting the nation’s regulations governing digital assets, he said: “We have been shocked at the ignorance of those who assert that FTX came to the Bahamas because they did not want to submit to regulatory scrutiny. In fact, the world is full of countries in which there is no legislative or regulatory authority over the crypto and digital asset business but I must say the Bahamas is not one of these countries.”


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