The Attorney General of the Bahamas made a video statement about the investigation into the collapse of FTX, which was based in the country. The investors in FTX think the government in the Bahamas didn't do its job.
In the new video, Pinder insisted that the rule of law in the Bahamas is strong and that other countries have also seen companies fail recently. The founder of FTX, Sam Bankman-Fried, is said to be still living in the island nation.
There are laws in the Bahamas. The integrity of our jurisdiction is characterized by the rule of law and the exercise of due process. FTX filed for Chapter 11 in Delaware. FTX was not allowed to file for bankruptcy in the U.S. and at least part of the reorganization of the company falls under their authority.
The former British colony of the Bahamas is well-known as a tax haven for the ultra-wealthy from around the world, and has been actively courting the industry in recent years.
Sam Bankman-Fried is still living as a free man in the Bahamas, and many people are wondering why. Bankman-Fried is said to have lost billions of dollars by using customer deposits from FTX to make risky investments. Questions of exact amounts and where all that money went are still unanswered despite Bankman-Fried admitting to the behavior in media interviews.
FTX, which was registered to do business in the Bahamas, was not regulated in that country. The Bahamas Securities Commission was praised by Pinder for suspending FTX's business license and appointing Liquidators in the company, which was only recently worth $32 billion.
The seizure of cryptocurrencies held by FTX was the first step taken by the Commission.
The basics of the case have been obscured by games and rumors. Pinder insisted that his office was in the early stages of its investigation.
"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 in speculation or gossip, but instead to proceed in accordance with the exercise of due process and the rule of law."
The industry was bound to have difficulties in its early years, according to Pinder. With billions of real dollars missing, it's hard to empathise with FTX depositors who thought they were investing in a safe platform. More people believed the company was a safe place to park their money when FTX bought TV ads during the Super Bowl. David and other celebrities were sued for their involvement in the company's marketing.
There isn't an agreed upon standard for thecryptocurrencies. Regulators are still trying to regulate digital assets.
He tried to suggest that other governments around the world should have been keeping an eye on FTX before it filed for Chapter 11.
It would be a gross oversimplification of the situation to say that FTX is based in the Bahamas.
Pinder insisted that the Bahamas is a good place to do business with a strong legal framework to deal with bad actors. It all sounded like someone wanted to know how honest they were. People who are honest don't spend a lot of time telling lies.
FTX came to the Bahamas because they did not want to be subject to regulatory scrutiny. There is no legislative authority over the digital asset business in many countries.
Attorney General Pinder may as well have worn a shirt that said, "the Bahamas is not involved in crypto laundering", a move sure to prompt questions already answered by his shirt.
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