“In light of the collapse of FTX globally and the provisional liquidation of FTX Digital Markets Ltd, a team of financial investigators from the Financial Crimes Investigation branch are working closely with the Bahamas Securities Commission to investigate if any criminal misconduct occurred,” a brief statement from police said.
This comes after local regulators moved last week to protect clients of The Bahamas’ flagship crypto currency investor by “freezing” its assets, and seizing control of the company, amid reports it acquired $74m in local real estate this year alone.
On Thursday, the Securities Commission said the Supreme Court had approved Brian Simms, KC, as joint provisional liquidator with powers to take control of the crypto exchange’s Bahamian company and affiliate entities.
In a press statement yesterday, Mr Pintard said the opposition is dismayed at the turn of events regarding the apparent collapse of FTX that held so much promise for the future of digital asset management in The Bahamas.
AP reported the crypto exchange giant, its hedge fund Alameda Research, and “dozens of other affiliated companies filed a bankruptcy petition in Delaware”.
“We are all shocked by the daily revelations that are now becoming known nationally and internationally and call upon the government to provide the investing public a clear and cogent statement on the matter and the steps being taken to guard against the jurisdictional fall out and to shore up investor confidence,” Mr Pintard said.
“We also call upon the government to outline to the public what financial exposures exist for the government, if any, and indicate if there are any implications for the national budget. We call upon the government to confirm whether the land intended for the FTX commercial complex was private leased land. In the event that it was public land, what steps have been taken to secure the land and have it returned to its original state?”
In July, Prime Minister Philip “Brave” Davis said his administration is exploring the idea of establishing a carbon exchange in The Bahamas with FTX, “where we will trade our carbon credits”.
“The government’s much touted proposed carbon credit trading platform was announced to be facilitated through FTX’s exchange platform. Given current events, what impact will this development have on the potential for carbon trading, what alternative arrangements are being made and when will we see the first trade and benefit from this activity, if any?” he asked.
“Has the government begun to estimate the loss exposure of the private sector as a result of FTX’s apparent collapse and the personal losses of Mr Bankman-Fried and his colleagues? “What measures are being taken to protect Bahamians from any anticipated loss?
“The opposition continues to have complete faith in the Securities Exchange Commission and other relevant regulators to conduct a full and transparent investigation into what has gone wrong at FTX and to ensure that the public and investor interest is protected to the extent possible. “In light of the fact that there are likely other companies operating in the digital assets space in this jurisdiction, what steps, if any, has the government taken to allay any concerns which may have arisen. Given the enormity of this situation and turn of events, there is an urgent need for the government to speak to this issue clearly and transparently,” Mr Pintard said.
FTX’s founder, Sam Bankman-Fried, is said to be weathering the storm in The Bahamas, reportedly holed up at the luxury western New Providence community of Albany.
In addition to the SEC probe, the US Justice Department is also investigating FTX.
According to Tribune Business, the probes are said to be focusing on whether Mr Bankman- Fried and FTX used customers’ deposits to fund bets and trading activities at his hedge fund, Alameda Research. Client funds are supposed to be kept separate from company assets, and there were suggestions the FTX founder has committed the “ultimate sin” by tapping into FTX’s custodial assets to fund Alameda Research.
