AG to outline government’s position and response to FTX collapse in national address

AG to outline government’s position and response to FTX collapse in national address
FTX logo is seen in this illustration taken, November 8, 2022. REUTERS/Dado Ruvic/Illustration

NASSAU, BAHAMAS — Attorney General Ryan Pinder is set to deliver an address outlining the government’s position and response to the FTX collapse on Sunday. 

Pinder told reporters yesterday that there were differing opinions surrounding the failed crypto asset exchange because it is such a large event.

“Some of them are going to be right and some are going to be not correct,” Pinder said.

“In fact, I think the Securities Commission is on record saying that some of the things which have been said at the bankruptcy proceedings are misleading and false.”

The Securities Commission has defended its decision to transfer all digital assets of FTX into digital wallets under its control for the benefit of clients and creditors of FTX Digital Markets.

In a statement earlier this week the commission said that it was “unfortunate” that in Chapter 11 filings, the new CEO of FTX Trading Ltd had misrepresented the action. The SCB said it determined that the customers and creditors of FTX Digital Markets were in need of the protection of the DARE Act on November 10, 2022.

The commission suspended FDM’s license to conduct business and subsequently filed a The commission said it determined that placing FDM into liquidation was not sufficient to protect the customers and creditors of FDM given the nature of digital assets, and the risks associated with hacking and compromise.

The Commission said, “It is unfortunate that in Chapter 11 filings, the new CEO of FTX Trading Ltd. misrepresented this timely action through the intemperate and inaccurate allegations lodged in the Transfer Motion. It is also concerning that the Chapter 11 debtors chose to rely on the statements of individuals they have (in other filings) characterized as unreliable sources of information and potentially “seriously compromised.”

The commission said: “Further, the statements made by the purported officers of FTX Trading Ltd. and the other purported Chapter 11 debtors – that they have suffered significant thefts, that their systems were compromised, and that they continue to face new hacking attempts – reinforces the wisdom of the Commission’s prompt action to secure these digital assets,” the Commission said. John Ray III took over as CEO of FTX after its founder Sam Bankman-Fried resigned. Ray said: “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here. From compromised systems integrity and faulty regulatory oversight abroad to the concentration of control in the hands of a very small group of inexperienced, unsophisticated, and potentially compromised individuals, this situation is unprecedented.”

Pinder said yesterday, “What I will do on behalf of the government on Sunday evening is give an address to really describe the government’s response and position with respect to the FTX collapse. Certainly, there are ongoing investigations both from the regulator and the financial unit that we have to be mindful of so we probably won’t dive deep into the investigations that are occurring but I will give a statement reassuring the Bahamian people that The Bahamas is a well-regulated place, a place to do business.”

According to court documents, the cryptocurrency exchange owes creditors $3.1 billion. FTX has reportedly claimed in filings that it has between $10 billion and $50 billion in estimated liabilities and assets.

The Securities Commission has taken action to freeze the assets of FTX Digital Markets and related parties, in the wake of the company’s collapse.

FTX moved its headquarters from Hong Kong to The Bahamas last year, and earlier this year announced plans to invest around $60 million towards the development of a boutique hotel, commercial center, and its new headquarters on nearly five acres of land at Bayside Executive Park.


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