Bahamas AG Gets Defensive as FTX Investors Ask About Sam Bankman-Fried

The Attorney General of the Bahamas, L. Ryan Pinder, launched a video assertion on Sunday evening concerning the investigation into crypto platform FTX, which was primarily based within the Bahamas earlier than it imploded earlier this month, taking billions of {dollars} with it. And not less than one factor is evident: Pinder is aware of traders in FTX suppose the authorities within the Bahamas didn’t do its job.

Pinder was extremely defensive within the new video, insisting the Bahamas is a jurisdiction of legal guidelines and that different nations have additionally seen crypto corporations fail in spectacular style these days. But Pinder didn’t tip his hand about what would possibly occur to Sam Bankman-Fried, the FTX founder generally referred to as SBF, who’s reportedly nonetheless residing within the island nation.

“The Bahamas is a place of laws. The rule of law and the exercise of due process characterize the integrity of our jurisdiction,” Pinder mentioned opening his 23-minute video, which was streamed on Facebook.

The Bahamas is notorious as a tax haven for the ultra-wealthy from all over the world and has been actively courting crypto corporations lately to arrange store within the former British colony.

FTX filed for chapter over two weeks in the past, however many within the crypto world are questioning why Sam Bankman-Fried remains to be residing as a free man within the Bahamas. Bankman-Fried reportedly was utilizing buyer deposits from FTX to gamble at his hedge fund Alameda Research, apparently shedding billions of {dollars} within the course of. Bankman-Fried has kind of admitted to the behavior in media interviews and tweets, although the precise quantities and the place all that cash went are nonetheless unanswered questions.

Pinder was fast to notice throughout his video stream that Alameda Research wasn’t regulated within the Bahamas, in contrast to FTX which was registered to do enterprise there. Pinder additionally praised the Bahamas Securities Commission for shifting “swiftly” to droop FTX’s enterprise license and appoint liquidators within the firm, which was solely just lately valued at $32 billion.

“The Commission was the first regulator in the world to take significant steps with respect to the FTX group of companies,” Pinder mentioned, referring to the seizure of cryptocurrencies held by FTX.

But Pinder mentioned the “basic facts” of the case have been “obscured by guessing games and rumors.” Pinder saved insisting that his workplace is within the “early stages” of its “very complex” investigation into FTX.

“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 methodically and deliberately in accordance with the exercise of due process and the rule of law,” Pinder mentioned.

Pinder characterised the cryptocurrency business as merely a brand new frontier that was sure to expertise difficulties in its early years. But with billions of very actual {dollars} lacking, it’s powerful to seek out a lot sympathy amongst FTX depositors who thought they had been investing in a protected platform. FTX even purchased TV advertisements throughout the Super Bowl that includes Larry David, main much more folks to consider the corporate was a protected place to park their cash.

“There is still no agreed upon standards globally,” Pinder famous for the crypto business. “Regulators from around the world are still grappling with how to regulate digital assets.”

Pinder repeatedly mentioned that FTX was working in loads of different jurisdictions, attempting to recommend that different governments all over the world ought to have been maintaining a tally of issues earlier than FTX filed for chapter.

“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,” Pinder said.

In reality, Pinder spent the overwhelming majority of his time on Sunday evening insisting that the Bahamas is a good place to do enterprise, with a powerful authorized framework to take care of dangerous actors. But all of it sounded a bit like somebody insisting simply how sincere they’re whenever you didn’t actually ask. Honest folks typically don’t spend all day insisting they by no means inform lies.

“We have been shocked at the ignorance of those who assert FTX came to the Bahamas because they did not want to commit to regulatory scrutiny. In fact, the world is full of countries which there is no legislative regulatory authority over the crypto and digital asset business,” Pinder mentioned, clearly getting labored up.

Attorney General Pinder might as effectively have worn a shirt studying, “the Bahamas is not involved in crypto laundering,” a transfer positive to generate questions already answered by his shirt.