NASSAU, BAHAMAS — As the collapse of crypto exchange giant FTX continues to send shockwaves through the crypto market, the fall-out locally could be felt across several sectors.
Bahamas Real Estate Association (BREA) president Nikki Beouf yesterday warned there could be a negative impact on the local real estate industry.
FTX announced that it was filing for bankruptcy on Friday, capping off a week of bad news for the company.
The arrival of FTX in The Bahamas was widely viewed as a major coup in this nation’s efforts to establish itself as a digital assets hub. Beouf acknowledged that the company’s presence generated real estate activity in the commercial segment as well as interest from persons relocating.
“It may have a negative impact on real estate,” Beouf said.
“I am not sure how many but you know it will have consequences in the home market as well as commercial real estate.”
FTX moved its headquarters to The Bahamas last year and revealed earlier this year that it was looking to invest around $60 million towards the development of a boutique hotel, commercial centre, and its new headquarters on nearly five acres of land at Bayside Executive Park.
According to information seen by Eyewitness News, the company purchased more than $74 million worth of local real estate this year, including its offices currently housed at the Meridian Corporate Centre. Those properties may now have to be liquidated to satisfy its creditors.
The Securities Commission of The Bahamas said on Thursday that it had taken action to freeze the assets of FTX Digital Markets and related parties. The Commission in a statement said that it also suspended the registration and applied to the Supreme Court of The Bahamas for the appointment of a provisional liquidator of FTX Digital Markets Ltd. (FDM), with Brian Simms, K.C. (Lennox Paton Counsel and Attorney-at-Law) being appointed as provisional liquidator.
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