Bahamas Attorney-General Responds to Criticism in FTX Case

The Bahamas regulator acted quickly and responsibly in response to the FTX collapse, and does not intend to share additional information about the ongoing investigation amid concerns it could compromise it. This was stated by Ryan Pinder, a senator, the Minister of Legal Affairs and the Attorney-General of the country.

The official cited the rule of law, explaining the suspension of the Bahamas-registered FTX Digital Markets license and the safeguarding of assets on behalf of and for the benefit of its clients and creditors.

He also stressed that Alameda Research is not under the oversight of the country’s authorities.

Former CEO Sam Bankman-Fried backed Pinder. In the community, this raised suspicions of his collusion with the country’s authorities.

The fact that Sam is retweeting this tells me that he made a deal.

— Kim Dotcom (@KimDotcom) November 28, 2022

We urge others to exercise the same caution and restraint in their statements, so as not to jeopardize the investigation. It is quite possible that the prospect of multi-million-dollar fees for legal services and consulting is the driving force behind both their strategy and their outspoken statements, — Pinder explained.

The official noted the lack of global standards for cryptocurrency regulation and the Bahamas’ “global leadership” as a startup jurisdiction.

Pinder said authorities will seek to hold any company or individual implicated in wrongdoing to account. The regulator is open to cooperating with colleagues and law enforcement in other countries.

Any attempt to pin all blame for the FTX collapse on the Bahamas, because the exchange’s headquarters are based here, would be a crude simplification of reality. It would be deeply misleading to conclude that a reluctance to disclose details of the active investigation means that nothing is happening — Pinder explained.

Earlier, U.S. Representative Tom Emmer called the FTX crisis a failure of industry regulation.

Earlier, Senator Elizabeth Warren called for tighter oversight of digital asset market participants.

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