NASSAU, BAHAMAS — The Opposition is demanding an immediate investigation into allegations that FTX paid $675,000 to entities affiliated with high-ranking government officials and their families.
The allegations were made by Robert Cleary, the examiner appointed by the US Justice Department trustee to investigate the crypto exchange’s collapse.
Opposition leader Michael Pintard in a statement noted: “The Opposition is alarmed by the reported allegation that FTX paid some $675,000 in donations to companies with close ties to senior government officials.
“To protect the Bahamas’ reputation as a credible and legitimate place to do business, the Prime Minister must immediately agree to launch a complete and thorough investigation into these allegations of potential public corruption.
The FNM’s Leader asked: “Which companies received these monies, and who were the ultimate beneficiaries of the funds? What purposes were the monies paid out for?
“Did the senior government officials involved declare the conflict of interests?
“Were these senior government officials in positions that directly or indirectly influence decisions impacting FTX, its competitors or the digital marketplace?
“Do the Bahamian court-appointed liquidators have access to this information regarding nearly $700,000 in “donations” to companies affiliated with high-ranking Bahamian officials and their families?
“Have the Bahamian liquidators put the matter forward to the authorities for further criminal investigation?”
Pintard noted that the Opposition anticipates that the necessary investigation will examine the activities of all public officials who had spheres of influence over decisions related to FTX, regardless of political affiliation, before and after the change in administration. He added: “Let the proverbial chips fall where they may.”
“Let’s not forget that although the investigation and subsequent trial of now-convicted felon Sam Bankman-Fried uncovered a series of crimes that would also breach the DARE Act of The Bahamas, we have received no explanation for why those apparent breaches of Bahamian law were never thoroughly investigated and pursued,” said Pintard.
Pintard renewed calls for the Government to appoint a bipartisan Select Committee of Parliament to review all matters related to FTX’s collapse.
“We must look past partisan politics and work collaboratively across the aisle with industry stakeholders to ensure that our legislative, regulatory and policy framework can build a robust and nimble digital assets industry that attracts only credible entities committed to sound business practices,” he noted.
Pintard concluded: “The Prime Minister must ensure that the Bahamas government gets out front on the investigation and not be pressed to move by subsequent revelations from external sources. If the Davis Administration shirks from its constitutional duty to protect the integrity of the jurisdiction from grave allegations of apparent misconduct by Bahamian public officials, the Prime Minister will yet again demonstrate to the Bahamian people and the global investment community that he and his Cabinet have neither the interest or the inclination to uphold the rule of law and the necessary standards of conduct in public life.”
