Bahamas Attorney General Defends Regulators’ Response To FTX Collapse

Bahamas Attorney General Defends Regulators’ Response To FTX Collapse. 

The massive collapse of one of the biggest crypto exchanges in the world FTX has also caused some massive criticism to be directed towards Bahamas officials and regulators. Despite this, the country’s attorney general claims his country’s officials had moved ‘swiftly’ in response to FTX’s scandals.

Pinder Clears Up Questions

Ryan Pinder, the Attorney General as well as the Minister of Legal Affairs for The Bahamas recently held a Sunday press conference to discuss many aspects of the fall of FTX and its relations to The Bahamas.

“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,” Pinder said.

Throughout his speech, Pinder stated clearly a number of times that he would be avoiding speaking further about the current investigations into FTX for fear of compromising them.

“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.” 

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Ryan Pinder then goes on to address the accusations made towards Bahamas regulators and officials in FTX’s bankruptcy court filing. This filing, made by FTX’s new CEO John Ray III accuses The Bahamas’ government of having ordered for “unauthorized” transactions of FTX’s funds around the time of its bankruptcy earlier this month. To this, Pinder argues that the Bahamian regulators had the right to this under local laws and that they were actually doing it to protect customers and creditors’ funds.

“It is extremely regrettable that in chapter 11 filings for bankruptcy protection made in New York last week… misrepresented the timely action taken by the Securities Commission and used inaccurate allegations lodged in the transfer motion they had filed to do so.” Pinder stated.

The Attorney General then continues to defend the country’s regulators, arguing that they acted with “remarkable” speed in responding to FTX’s collapse.

Ongoing Investigation

In his speech, Ryan Pinder also reiterates that FTX is currently still under active ongoing investigation, claiming it to be “a very complex investigation.”

He then discloses that Sam Bankman-Fried’s hedge fund Alameda Research does not fall under the regulatory jurisdiction of the Bahamas and therefore is not currently being investigated by their officials, unless further evidence is found that Alameda committed “improprieties” within the Bahamas.

Related: Ripple’s APAC Policy Director Says The Collapse of FTX was Incredibly Damaging

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