FTX founder Sam Bankman-Fried.
By EARYEL BOWLEG
Tribune Staff Reporter
ebowleg@tribunemedia.net
POLICE are working with the Securities Commission to investigate if any “criminal misconduct occurred” in view of the collapse of FTX, the Royal Bahamas Police Force announced yesterday.
“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.
Meanwhile, the Free National Movement has called on the government to provide the investing public with a clear and cogent statement on the matter regarding FTX. Party leader Michael Pintard said the public needs to know what if any exposure exists for the government in view of the developments, and if there are any implications for the national budget.
The Tribune reached out to the Office of the Prime Minister yesterday to see if a statement would be forthcoming on the controversy, however no comment was issued.
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”.
Mr Pintard raised concerns about the carbon credits in view of what has transpired with the company as well as the impact of FTX’s loss.
“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.
Comments
JokeyJack 1 year, 5 months ago
FNM may want to know whatever they think BUT in this country the Leader of His Majesty'a Official Opposition has NO POWER under the Constitution (aka New Slave Agreement) to know anything. Nothing!!!
He ought to know his job is to keep his mouth shut for 5 years. Well, he can TALK but that's all he can do.
Finances are kept secret !!!
When his Party was in power, they did not make the law fair in that regard, so now he can suck teeth.
Flyingfish 1 year, 5 months ago
They'll always complain how everything isn't fair and how this other party is corrupt. Yet they wouldn't dare to care to change the law to make it more fair, democratic, and decrease the centralization of power.
Sickened 1 year, 5 months ago
Exactly!!! Tighten regulations so that no party can be corrupt. Start with severe penalties for MP's not making their annual declarations on time. Mandatory penalties so that no minister can grant an extension to their cronies.
IslandWarrior 1 year, 5 months ago
"Expulsis piratis restituta commercia" (Pirates expelled, commerce restored) this declaration may have never happened, they are Pirates after all.
ThisIsOurs 1 year, 5 months ago
I think the motto is restituta piratis expulsis commercia... this the Bahamas
temptedbythefruitofanother 1 year, 5 months ago
Fake investment scheme explodes in the Bahamas and takes down millions of worldwide investors!?
Stop the presses!
ScullyUFO 1 year, 5 months ago
Regardless of your political leaning, in this case, Pintard is right. What are the implications that will affect the average Bahamian?
Sickened 1 year, 5 months ago
This whole thing is just digital Pet Rocks. Remember when people were selling river stones in a box for like $10 a piece? Kids would take their 'pet' to school and sell it for like $15.
Flyingfish 1 year, 5 months ago
That's was a time I was not here for but the 70s must have been wild ;)
For people to think that was somehow a smart purchase.
AnObserver 1 year, 5 months ago
You are completely wrong and ignorant.
It is nothing like Pet Rocks.
It is more like a Beanie Baby.
Sickened 1 year, 5 months ago
Lol. But you're wrong. Beanie Baby's still have some value - pet rocks, like FTT, don't.
KapunkleUp 1 year, 5 months ago
Government (FNM & PLP) do not understand the crypto world and only saw a way to make a quick dollar by allowing these kind of companies to set up shop here. Now, because of government's stupidity, our country again looks bad in the international press for hosting fraud.
DDK 1 year, 5 months ago
😆🤢😢😂
TalRussell 1 year, 5 months ago
Imagine the photoshop cropping by politicians on both sides the House and Upper Red Chamber isles to crop themselves and their family members, officials, the political appointed and incentivized -- posing in photos whilst knowing how deep were they up to their knickers, as benefactors to one of the 1960s, original Hippies, Comrade "Then Unknown Fake Crypto" Billionaire Sam bankman-fried fortune.
*No living human alive today -- possessed the creative genetics and life experiences a single lifetime to make up such stuffs.
And, it all was launched from the "Headquarters'" situated on the capital rock of our colony of 1200 islands, inlets, cays and rocks — Yes?
Maximilianotto 1 year, 5 months ago
Question - have the 10 FTX penthouse kids received Bahamian citizenship? Just an easy question for PM. YES/NO?
ThisIsOurs 1 year, 5 months ago
Everything we've done for the past 50 years set us up for this. Just last week I was asking where's the data that supports our the end of the world is near response to tropical storm, hurricane for 30secs, Nicole? And all you got in response was, you from Nassau you dont understand. Even today the stories continue featuring a 10x10 clapboard tin roof business building that was "completely destroyed". A month ago I said two things the central banks blockade of payment providers was anti innovative and the cashless craze was wrong way thinking. The data was all there. Then we had international food fest. "who could have known?" And that's our issue, especially with this govt that is super focused on creating good PR stories. Everybody ignores the data... reality is whatever we speak into being... and this is what you get.
I dont buy that our regulator has clean hands. There are errors of commission and errors of ommission. How in the dickens did was this company allowed to operate as a financial institution and offer services to the public without a CFO and a Risk Manager? That's "data".
And we been here before. Remember the NGO that probably has an operating budget under 1million but didnt notice 2 million on its accounts for months because of an accounting error? Seriously? And you had Bahamians defending them.
Brave Davis needs to stop flying around to environmental conferences giving puff speeches. This country needs someone to take it by the hands and shake out all the corruption cronyism and incompetence from our senior ranks. It's a start. Do it everywhere especially the police force and political parties. We cannot support empty suits and people incapable of doing their job. Or Sam will be the least of our worries
John 1 year, 5 months ago
The point you are missing is a cashless society is about control and more control. Regardless of how far you may and may not think the end of the world is. It may be the end of the financial world for some. And when things like FTX happens it sends the message loud and clear: Despite all the controls in place we don’t have the financial markets and activities under control. And whilst the newscasts here may have focused on 10x10 clapboard shacks, the major damage was done some distance away. To million dollar homes, condo complexes and multi-storey hotels. So this begs the question: when is enough controls enough? When do you look at that 10x 10 clapboard shack and say’you know what? I will battern tge windows and nail up the door. But after that I’m done trying to save this shack. Let nature and the elements take their toll. Because now it’s cheaper to take my losses and decide if to rebuild after that and where. Right now it’s about preservation of life and limb’
ThisIsOurs 1 year, 5 months ago
I didnt miss the control aspect. Ive said jokingly multiple tines, well at least hinted at it, that sand dollar and crypto will be perfect for the antichrist.
Where were these million dollar homes that got all this damage? 2ft from the shoreline in "Hurricane Alley", elevated 1ft off the sand? Again, "who could have known? who could have possibly forseen that?"
John 1 year, 5 months ago
Did anyone look on the financial radar and say look here, wait a minute: This FTX thing is moving too fast and growing too fast. And it’s even out-of-season. Like Nicole, it sneaked in barely noticeable then developed into a tropical disturbance, then a sub-tropical disturbance, then a tropical storm and then a hurricane. And when you saw it on the radar it was still an abnormally oddball. The storm remained in its Northwest quadrant and mostly out to sea, whilst it was in and over The Bahamas. But look at the damage it did once it hit the US. Death and damage all the way up the Florida Eastern coast and as far north as Maine , then even Canada. Maybe they was too busy blacklisting The Bahamas to pay attention to what was happening with this unusual baby.
ThisIsOurs 1 year, 5 months ago
It didnt sneak in anywhere. On this platform Ive made multiple analogies between crypto and the 2008 global financial crisis.. waaaaay before FTX even got here. The oodles and oodles of money that people made playing this brand new sexy security called a "derivative", then poof, as they say, the tide went out and everybody was naked, Obama was bailing out the 5 big banks and massive massive layoffs *globally. And I wasnt the only one saying it. Nobody missed this. Say you didnt listen
Like Nicole it was all predictable. Like the 2nd coming you dont know the day and time you just know it coming.
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